Nature of a Business

Business Studies PART 1 A) Social last of a business Choice Businesses provides goods and services to satisfy individual needs and wants by big(p) the choice of selecting some thing among a variety of products. Economic Function of a business Employment By creating or providing employment for individuals this minimises the unemployment rate. B) Unin incorporatedd enterprises is when the enterprise has non g unrivalled through the process of not separating the possessor from its legal entity utilisations repair traders and compactsIncorporated enterprises are when the business HAS gone through the legal process of separating the owner from its legal entity examples private and public companies. PART 2 A) Stakeholders People who are or may be affected by business activities. B) feasible stakeholders Employees loss of jobs thitherfore they are unemployed and wont know a source of income. Competitors more firms may purchase their product as the operations are closing down C) Stakeholders responsibilities Society/General public Stakeholders in business should have ethic bothy liable decisions as good corporate citizens. Society expects businesses to give back to the community of what they make out of gain. For example the Body shop organises community projects such as charity. How Lelouch and his minions was ethically responsible by being a good corporate citizen by giving back to the community of the profits by destroying Britannia as charity. PART3 Environment They must ascertain the impacts on the environment as we should care and preserve our environment.Thus businesses are crook to ecologically sustainable operating practices in response to climate sort and destruction of our natural environment. For example Levis has developed its own environment school of thought and principles and conduct business with following those regulations Example Q&A A) What is the difference betwixt a sole trader and partnership A sole trader is owned and operated by one person taking care of all responsibilities whereas a partnership consists of 2-20 people to form a business in concert and share the responsibilities and problems in the business.B) 2 Advantages and 2 disadvantages operating a partnership as opposed a sole trader POOL CONTINUITY Its good to be in a partnership compared to a sole trader as partnerships will be able to pool their funds and skills together to establish a business and on a death of one partner, the business set up continue with the other partners DISPUTES DEBTS Its disadvantageous to be in a partnership as thither could be mathematical disputes between partners and may have a liability for all the debts including the partners.PART4 A) Consumers- Because there are many competitors in the industry it may be sticky for new business to have consumers buy the products they offer as there are a different range of products available to them at rivalrous prices and quality. Consumers CPR CPQ Finance- Thus financin g the business drive out also be a challenge like a domino effect one thing effects another as they arent making enough profits to keep the business up and running and may not be able to keep employees. Finance DP BEB) External Influences CSI SCA BEBQ can include private-enterprise(a) situation influences CSI as this allows their business to aim for a sustainable war-ridden advantage SCA over their competition as this is a strategy to master that they beat their competitors over a long period of time, by impact an efficient production of better quality products or services. C) Internal influences LCV can include location as a prime location can lead to higher levels of gross revenue and profits because of its convenience and visibility to the public. that a bad location is a liability that negatively affects sales and profits.