Business Structures and Models
List three different legal structures
Sole trader, Partnership, Private Limited Company, Public Listed Company, Social Enterprise, Government business enterprise
List the three types of business resources
Labour, Capital, Natural
Define business location
A business location is the physical or non-physical place that a business operates from.
What are the three types of equity capital
Personal, Private, Public
Describe one type of support services
Legal support services Financial support services Technological support services Community-based support services Formal networks Informal networks Business mentors
List all six of the business models we have studied
Online business
Direct-to-consumer business
Bricks-and-mortar business
Franchise
Importer
Exporter
Which type of resource is the land a factory is built on
Natural
Shopping strips
Shopping centres
Home businesses
Online businesses
List three different sources of finance a business could consider
Equity capital, debt capital, grants, overdrafts, crowdfunding
Define business support services
Business support services are the specialised people, facilities, or amenities that aim to help businesses successfully operate.
List two advantages and two disadvantages of an online business
+ 24/7
+ Wider customer base
+ Convenience - location
+ Quick set up
+ Less expensive operating costs
- Cannot touch product
- No customer relationships
- higher risk of theft/ damage
- Online security issues
- Website maintenance can be expensive
Define capital resources
Capital resources are man-made goods used in the production of goods and services.
What are three factors affecting the choice of business location?
Visability and accessibility
Cost
Proximity to competitors
Proximity to complementary businesses
Proximity to suppliers
Proximity to customers
Area demographics
Laws and regulations
Define Grants
A grant is money provided by a government or another organisation for a particular reason.
Describe the difference between formal and informal networks
An informal network is an unofficial interconnected group: Friends, family etc.
Formal networks are interconnected groups of people and official organisations that assist in offering professional support to business owners.
List the four types of online businesses
- Advertising Model
- Brokerage Model
- Direct-to-consumer or merchant model
- Subscription Model
What are the three factors affecting a businesses use of labour resources
Cost
Quality
CSR
Describe one advantage and one disadvantage of locating a business in a shopping strip
+Fewer competitors to shopping centre
+ Increase loyal customers and close to local members
+ Employees can travel by public transport
- customers may spend less time if they are only going to the strip for one thing
- Less foot traffic compared to SC
- less parking
- rent can be expensive
Define Debt Capital
Debt capital is money that has been lent to a business by an external source that must be paid back over time with interest.
Identify two ways a legal support service could help a business
Choosing an appropriate legal business structure
Drawing up contracts, such as leases and partnership agreements
Informing and advising businesses on changes to the law
Legal representation in court cases
Define limited liability
Limited liability is when shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts
Explain two factors a business owner should consider when planning its capital resources
Supplier considerations
• Cost :To increase their profit, business owners may choose suppliers that supply capital resources at a lower cost.
• Quality: Business owners may choose suppliers with higher-quality capital resources to increase the quality of their final product.
Nature of resources
• Capability: Businesses may require capital resources that are technologically advanced and can complete tasks that are potentially dangerous or impossible for employees to complete.
• Operation requirements: Some capital resources, such as complex machinery, require employees to be trained to operate them correctly.
• Maintenance requirements: Businesses may need to continuously maintain certain capital resources, such as applying software updates to technology.
CSR
• Environmental sustainability: Businesses may choose to use capital resources that reduce their impact on the environment, such as machinery that can reduce waste associated with human errors.
• Social sustainability: Businesses may choose to source capital resources from local suppliers to support the nation’s econom
What kind of permits may business owners operating from home need to consider?
Permits relating to noise levels, zoning, and signage also may be needed.
Which source of finance has the highest level of control
Personal equity capital
Identify two ways technological support services could help a business
Developing, installing, and maintaining technological systems, such as a website
Maintaining online security and privacy of customers
Training workers in understanding and using technology
Advising on hardware and software that can improve operations