Category: Business Studies
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Types of Business organisations
Types of business organisations Sole trader Partnership Limited companies Franchise Joint ventures
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Choosing the form of organisation
Choosing the form of organization When you want to chose the form of organization you should consider these factors: Objectives Growth Finance Limited liability
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What affects International trade?
Which things affect international trade Quotas Exchange rate Tariff barriers Impact of Quotas on international trade Quota limits the number of imported goods entering the country For example The government declares that only 10,000 bars of chocolate can be imported from a foreign country Quota discourages international trade Impact of Exchange rates on…
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Consumer exploitation
Consumer exploitation in uncompetitive markets No variety Businesses charge a greater price for products as there is no competition Consumer is also exploited by given low quality products No or bad customer service
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Impact of Competition
Impact of competition on business Competition mostly has positive impact Businesses strive to achieve efficiency Sales are reduced as another business is also providing the same king of product Businesses have to provide greater variety to the consumers
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Entering new markets
Problems of entering new market Lack of knowledge No contacts Lack of appreciation How to deal with this problem To make aware with the laws and customs The business should hire some local people in the country A detailed market research should be conducted to determine the tastes, needs and wants of the people…
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What is International trade?
International trade International trade is the import and export of products with other countries Opportunities for businesses because of international trade The businessmen can sell their products to a larger number of people Imported raw materials available Provide greater variety thus increasing sales Problems for businesses because of international trade Duplication of products…
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Types of Economic systems
3 different economies Market economy Planned economy Mixed economy Market economy An economy where the resources are managed by the private sector The government has minimal role, except providing some products Planned economy An economy where the resources are managed by the private sector The government has minimal role, except providing some products…
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Increased competition
Impact of increased competition on consumers Positive impact High quality products Lower prices More variety provided Negative impact May have to pay more if competitors engage in a marketing war Impact of increased competition on business Positive impact Operating at efficiency Negative impact Unable to earn abnormal profits Less money available to grow big…
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More competitive market
Why markets have become more competitive Reasons Monopolies are discouraged Decrease in red tape Cheaper goods from other countries Enough information available