Business & People Asad
De-industrialisations: The reduction of importance of the secondary sector of business activity in a country.
Dividend: A payment made to shareholders from the profits made by a private or public limited company.
Sole proprietor: One person who owns the business.
Horizontal integration: Merger or takeover of another business at the same stage of production in the same industry.
Vertical integrations: Merger or takeover of another business not at the same stage of production in the same industry.
Footloose: A business is able to locate anywhere it chooses.
Sleeping partner: A person who has invested capital in the business but who does not take an active part.
Globalisation: The worldwide interdependence of business activity.
Multinational company: A company with facilities in several different countries.
Maslow’s Hierarchy of needs: A theory that can be used to explain what motivates workers.
Deduction: Money taken off a person’s gross pay for income tax.
Gross pay: Pay before deductions.
Net pay: Pay after deductions.
On the job training: Occurs at the place of work and while the worker is doing their job.
Off the job training: When the worker is not doing their job it may be at the place of work or somewhere else.
Coaching: When one worker supports another to develop that person’s knowledge and skills.
Part 1 Business and finance 1. If you want to buy an existing business you have to pay some extra money to recognise the work done by the previews owners, the existing costumer base and the reputation of the business. The combined value of these represents goodwill. 2.The purchase of stock- trade credit is probably the best option but a bank overdraft could be used. Renovations that will cost $50, ...
Redundancy: When employment is ended because the firm no longer needs the work that was done by an employee.
Chain of command: The link in the levels of authority from those at the top with the most authority to those at the bottom with the least.
Line of communication: The route a message travels between the sender and the receiver.
Line manager: This is the person who is directly responsible for other workers in the organisation.
Subordinates: The workers that a line manager is responsible for.
Span of control: The number of subordinates who report directly to the line manager.
Delegated: The process of giving a manager authority to a subordinate to make decisions for which that manager is responsible.
1. Sate and explain the objectives of most businesses.
Profit – Most businesses main target is to gain profit. This may be the only reason they have set up the business. Some businesses may want to maximise profits, which means they will try to make as much profit as possible. This may mean, however, that consumers feel they are not being treated well.
Growth – This is important to a business as it is seen as a way to raise profits. This is especially important to larger businesses such as public limited companies, which need the growth to pay increased dividends to their shareholders.
Survival – This objective is particularly important to a new business for the first few months. Just to keep going after first opening a business may be something of an achievement.
Providing a service – This is linked with profit. The better the service the more customers attracted hence more profit made.
2. Explain the difference between a plc and a ltd.
Public companies – Ownership rights (Shares) are traded on the stock exchange. Anyone can have part ownership of the company. Their accounts need to be audited and are of public information.
Private company – Ownership is usually just a few people. These are commonly smaller businesses. Their shares are not traded on the stock exchange. Their accounts don’t need to be audited and their financial statements are private.
KFC Corporation (KFC, founded and also known as Kentucky Fried Chicken) is a chain of fast food restaurants based in Louisville, Kentucky in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off fromPepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While ...
3. Explain what happens at the secondary sector.
This sector generally takes the output of the primary sector and manufactures finished goods or where they are suitable for use by other businesses.