Revision for A-level Business studies 1.3



Different methods of measuring the size of a business

Number of employees working

Market share

Sales revenue

Capital invested

 

Small business

Advantages of being small business

Complete control

No legal requirements

Good owner-customer relationship

 

Disadvantages of being small business

Limited capital

Unlimited liability

 

Strengths of family business

Strong commitment

Family members may work for lower salaries

Family members are able to solve each other’s problems

 

Weaknesses of family business

Business suffers if the family members fight

Confused roles

 

Small businesses

Small businesses provide goods and service which a large business may not provide

Small businesses may cater to customers’ specific demands

Small businesses provide employment

 

Why business might grow

The business might grow

To earn more profit

To have a higher status

How business might grow

The business might grow in two ways

Internal growth

  • Offer more products
  • Locating in other places

External growth

  • By buying another business
  • By joining with another business

 






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