For students doing the topic: Establishing a Business: Production 1. Description of business – In this part you are required to give a brief description of your intended business. The examiner should (a) The name of your intended business e.g. Xtreme Graphics production (b) The type of business e.g. sole, proprietorship etc.
(c) What is the proposed business engaging in? E.g. production of local fruit juices (d) The major aims or aims of your business e.g. To make 100% profit by ensuring customer’s satisfaction. (e) If possible you can give example(s) of the goods and/ services you will be producing.
2. Justification of location- in this part you are required to: (a) State the location of your intended business, e.g. 152 John Street (b) Secondly, you will have to list and explain the factors which influence your choice of location. (Check your textbook) e.g. Closeness to raw materials.
3. Selection of appropriate labour- as we already know labour is an important of production and if you don’t select the most appropriate type of labour then inefficiency would take occur and productivity will decline. You are required to” (a) List the type of labour you will enjoy employ. E.g. cleaner (b) Then classify them under the three main categories of labour namely: - Skilled
4. Sources of fixed and working capital- Capital refers to money and all other assets of a person, company or industry that can be converted into money. PHYSICAL CAPITAL consists of fixed capital and working or circulating capital. FIXED capital refers to capital that is of a lasting nature and which does not change its form during the course of production, e.g., factory buildings, machines and tractors. WORKING or CIRCULATING capital changes its form or state during the course of production, e.g., raw materials and partly finished goods....