1&2
What is a stakeholder?
Someone who is affected by business decisions/ have interest in business operation
Difference between limited and unlimited liability
cannot take away valuable asset if limited
What is privatisation
transfer of public sector resources to private sector
2 example of primary jobs, 2 of secondary, 2 of tertiary
.
What is globalisation
growing interconnectedness between world's economies
If a business raise price of their product, which stakeholders will be in support and be against.
Why is going public expensive
prospectus must be legally correct, pay the bank, advertise, administrative expense, minimum of 50000 pounds share capital
What is profit satisficing
make a modest amount of profit to live a comfortable lifestyle
What is tariff and how does it affect a company
selling tax, companies want low tariffs, ASEAN will decrease tariffs for company who sell in ASEAN if they make products in ASEAN
What business opportunities are opened up by globalisation?
access to larger market, can lower costs, larger pool of labour, reduce taxation
Why might objectives change as business evolve. Give an example
Market conditions, technology, performance, legislation, internal reasons, etc.
3 features of a multinational
huge assets, qualified, marketing capability, up to date tech, political influence, etc.
What is deregulation and give an example
lifting legal restrictions, might increase minimum wage
Why are so many automative assembly plants located in Thailand
skilled workers, access to suppliers, already a big market, with resources and labour
What can a country do to become more globalised?
open up borders, free trade barriers, lower tariffs and increase immigration and emigration
Give 2 reasons to why a business objective must be clear. With examples
employee have something to work towards, owners have motivation, help decide what decisions business need to make, easier to assess performance
Advantages and disadvantages of partnership
more capital, share responsibility, more experience
unlimited liab, share profits, may argue, responsible for partner
Why is the BTS in Thailand own by the government.
no monopoly
Explain deindustrialisation in the UK.
At first, what is the dominant sector and now what is the most dominant. What is the reason for this change?
Primary and secondary, then now tertiary because advances in tech, competition of manafucturing from developing countries, prefer to spend income on services, outsourcing
Multinationals have technical and financial superiority. What does this mean?
can afford to employ the best talent possible, institutional experience, take risks and diversify because of their great size, huge bank of knowledge and advance tech
Explain what is economies of scale. Why does a large firm able to exploit economies of scale but a small business can't. What are the advantages of economies of scale?
ยาว เดี๋ยวกูเฉลยเอง
Pick what is better: starting your own business or becoming a franchisee.
Justify why it is a better option
ยาว
why will a private limited company don't want to become a PLC
PLC pay dividends to shareholders, don't wanna pay, want to reinvest profit
A new restaurant is opening up. Where should it locate regarding the resources, labour, competitors, infrastructure and market? 5 marks
near key food suppliers, reduce transport costs, have parking spaces, near market, downtown, visible, night time traffic, can argue next to competitors
Nike have open up a shoe factory in a developing country, Indonesia. What are the benefits to Indonesia and what are the threats?
Increase in income and employment, increase in tax, exports, transfer of knowledge and tech, improvement in human labour quality,
environmental damage, exploitation, repatriation of profits, lack of accountability