Category: Business Studies
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Disadvantages of Multinationals
Disadvantages of multinational companies on the countries Domestic market is badly affected Dumping may ruin the entire industry The revenue is taken back by the multi-national company Technology may not be applicable
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Advantages of Multinationals
Advantages of multinational companies to the countries Employment opportunities Tax revenue to the country Providing goods and services Global image Country is introduced to new technology
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Multinational Firms
Why multinational companies are created To operate in many different countries and provide goods and services all around the globe The begin business activities in other countries to avoid trade barriers They want aim to understand the tastes and needs of their customer by employing their marketing staff in the country Reasons for the…
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Difference between unincorporated Business and Limited company
Unincorporated business Limited company Example: Sole trader, partnerships Example: Private limited company No shares can be issued Shares can be issued Unlimited liability Limited liability Not a legal entity Legal entity Less capital available More capital available If the owner dies business dies If the owner dies th business still exists
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Difference between Sole trader and Partnerhip
Sole trader Partnership 1 owner 2-20 people are owners Decision made by 1 person Decisions are made by partners Limited capital Extra capital Sole trader enjoys all profits Partners have to share the profit Sole trader has to suffer all losses Partners have to share the losses
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What is a joint venture?
Joint venture Joint venture happens when two separate companies join hands to complete a project They share knowledge and expertise to complete the project successfully
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What is a Franchise?
Franchise To use the name of a large business to conduct business activities Franchisee uses the name Franchisor grants the permission to franchisee to use the name for a fees Eg. Mc Donald’s has many restaurants all over the world which are mostly run by the franchisees
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What is limited company?
Limited company A business owned and managed by a group of people Directors make the decisions Profit is shared among the shareholders If businesses lose money the shareholders don’t have to sell their personal assets to repay creditors
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What is Partnership?
Partnership The business is owned and managed by 2-20 people Partners make the decisions Profit is shared among the partners If businesses lose money, the partners have to sell their personal assets to pay off creditors (unlimited liability)