Yr 11 Preliminary Business Notes

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Test Notes:
Definition:
Business: An organised effort of individuals to produce, sell, for a profit, the products that satisfy consumer needs and wants.

Entrepreneur: Someone who starts, operates and assumes the risk of a business venture in the hope of making a profit.

Float a company: When a firm forms a company with shares. The company then applies for a listing on the stock exchange, once completed the company can then decide how much shares they want to make available for the general public to purchase.

Industry sectors:
Primary: Includes all those businesses in which production is directly associated with natural resources (raw materials). E.G farming, mining an fishing. It's role is essential as it provides all our food requirements.

Secondary: Involves taking a raw material and making it into a finished or semi-finished product. E.G car manufactures (steel into car) or milk packaging products, or fruit packaging.

Tertiary: Involves performing a service for other people. E.G retailers, dentists, solicitors.

Quaternary: Includes services that involve the transfer and processing of information and knowledge. E.G telecommunication, finance, education.

Quinary: Services that have traditionally been performed in the home e.g restaurants, tourism, childcare.

Legal Structure: Partnership
|Advantages |Disadvantages | |Less costly to operate |Personal unlimited liability | |Shared responsibility and workload |Possibility of disputes | |No taxes on business profits, only on personal income. |Difficulty in finding a suitable partner....
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