business 2:3

Mind Map by 12richardsonc, updated more than 1 year ago
Created by 12richardsonc about 5 years ago


revision of business studies unit 2:3

Resource summary

business 2:3
1 growth
1.1 growth is an expansion of a business or service
1.1.1 advantages economies of scale new customers more money £! spread the risk more market share
1.1.2 disadvantages less/loss of controll less quality all branches may suffer if one mess's up
1.2 internal
1.2.1 new equipment
1.2.2 advertising
1.2.3 new workers
1.2.4 more output
1.3 external
1.3.1 merges diplomatic
1.3.2 takeovers must own at least 51% of shares
1.3.3 franchise
2 location
2.1 if a business isnt well located it may be more likely to fail
2.2 advantages
2.2.1 transport links so goods customers and staff can go to and from business easily
2.2.2 better location more customers
2.2.3 less competition
2.3 disadvantages
2.3.1 cost of transport to customers and from suppliers may go up!
2.3.2 longer wait for stock to arrive
2.3.3 competition may be already there so its harder for shops new to the area as customers trust them already
3 eu
3.1 advantages
3.1.1 bring people together
3.1.2 more trade and workers
3.1.3 no additional business and trade costs to members of the eu
3.1.4 better relationships between countrys
3.1.5 less risk& legal work
3.2 disadvantages
3.2.1 have to follow the EU'S rules
3.2.2 less say on the running of countries
4 production methods
4.1 batch
4.1.1 advantages produced in groups partly speacialised workers
4.1.2 disadvantages repetitive
4.2 flow
4.2.1 advantages inexpensive continuous
4.2.2 disadvantages repetitive
4.3 job
4.3.1 advantages 1 off high quaity speacialised
4.3.2 disadvantages expensive takes a long time
4.4 just in time
4.4.1 advantages less space needed
4.4.2 need reliable deliverer need a reliable deliverer
5 break even
5.1 total cost - total revenue
5.2 when total cost and total revenue are even a business has broken even this is neither a loss nor profit when profit out ways loss they have profited and if loss out weighs profit they have lost money
6 types of business
6.1 sole trader
6.1.1 disadvantages no-one to get advice from no time to self higher prices to compete UNLIMITED LIABILITY
6.1.2 advantages easy to set up affairs private all profits all desisions
6.2 partnership
6.2.1 2-20 people spread risk
6.2.2 share work load
6.2.3 multiple people putting money each person has less to loose
6.2.4 share descisions
6.2.5 share profits
6.2.6 disagreements on running the business
6.2.7 unlimited liability except sleeping partners
6.2.8 sleeping partner has no part in the running of the business but has invested money
6.3 LTD (private limited company)
6.4 public limited company(PLC)
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