sole trader is a person who carries out the trade or business single handedly. usually there is no one to assists him though in some cases he might keep an assistent or a helper.
features:
1. he is responsible for the entire business
2. the law does not make any distincion between the owner and his business
3. his liability is unlimited. e.g if the business goes bankrupt. the owner will have to raise money from his own assets and financial resource to pay for the creditor and lenders.
4. the sole trader has the final say as far as decision making is concerned. since he has all the freedom to take all of the decision he is also reponsible for them.
5. he keeps the entire profit earned by him simmilarly he also has to shoulder the entire burden of lost.
6. a sole entirety might come to an end if the owner becomes bankrupt or has an entimely demise
reasons why people might set up their own business :
1. you control your own destiny, you are making the decisions on how best to steer your company into the future. these may lead to creating a culture, a brand, and an organisation.
2. you can find your own word life balance. meaning, flexibility, working for wherever you want, setting your own hours, or even wearing a night gown or sitting by your pet while you work. owning their own business, lets them set their priorities.
3. you choose the people you work with.
4. you take on the risk and reap the rewards. in another way the better the are at managing risks, the more rewards you reap.
5. you can challenge yourself new opportunities to be creative and learn something new.
6. you can follow your passion.
7. you can get things done faster. rather than wait for approval, small business got the chance and flexibility to be proactive to run new things up and be at the forefront of new products, techniques, or promotional strategies.
8. you can connect with your clients.
9. you can give back to the community. business owner can give back to community, they operate in the form of the products and services they offer by donating to charities and especially the ability to create jobs.
10. you feel pride in building something of your own. there is pride in being succesful through your own leadership, abilities, ideas, and efforts. the public are interested inyou, and your story.
Monday, 21 April 2014
Tuesday, 15 April 2014
How do you think young people are influenced by what they see on television?
I think that although movies or TV programs have some good aspects, they affect people and society more negatively. Children who spend a lot of time watching television tend to get lower gades. In addition, violent movies or TV programs make our society more aggressive. I feel as though we thread through our lives believing that we never have enough, where we are is not where we should be, and who we are is not good enough.
TV teaches us that society awards perfection, and those of us who merely scrape by are less valueable or less important than those who excel. We are taught that in order to be great, we have to do better, be more, achieve more, and have more. As a result, throughout life we actually become less and less. We don't evolve, we merely become distracted and preoccupied. WE have more things, but less time. We have success in our material world, yet we are empty inside. TV to me is time consuming and a barrier to the outside world. I just feel it robs us of precious time, the average person watches more than five hours of TV a day. That's 35 a week. If you get rid of your TV, you can reclaim this time for youself. TV often makes us oblivious to the world around us and not to mention the fact that six media corporations run 96% of all media, that just demonstrates the illusion of choice, we are shown what they want us to be shown.
Monday, 17 March 2014
1.3 Changing Business Environment (Questions)
1. defence, health, education, social security, transport.
2. he knows that meeting these demands for increased spending will mean that he has to put up taxes.
3. i would not put taxes
4. youre gonna cut from income or increase taxes in expanditure or you cut more from businesses, in order to give enough to the ministry blabla.
but if you say you wouldnt, the ministry of defence will remain the same nothing cahge, some areas/nation is lacking. if youre lacking in defense, then the nation would not be as secure as it is/below.
2. he knows that meeting these demands for increased spending will mean that he has to put up taxes.
3. i would not put taxes
4. youre gonna cut from income or increase taxes in expanditure or you cut more from businesses, in order to give enough to the ministry blabla.
but if you say you wouldnt, the ministry of defence will remain the same nothing cahge, some areas/nation is lacking. if youre lacking in defense, then the nation would not be as secure as it is/below.
Sunday, 16 March 2014
Government Influence
goverments influence business and the economy through:
1. taxation
2. public spending
They control the amount of money in circulation and estamating economic growth.
reasons why governments influence the economy of a country?
1. to ensure ensential goods and services are available to sections to community who need them.
2. to prohibit or control production of goods and services considered undesirable or harmful.
3. to regulae supplier activity and protect customer's interest.
4. help this advantage sections of community through taxation and walfare
5. to help supplier through grand and subsidies and improve trading conditions.
6. to encourage economic growth.
so goverments influenced the economy through two things:
1. physical policies
2. monotory policies
physical policies concerne with government income and public expanditur
while monotory policies it is concerne with the amount of money in stimulating
how does a government gets its money?
most important income source is taxation
3 main types of taxes:
1. Direct taxes, it is taxes on income. they reduce the amount of person keeps out of his or her earnings.
2. taxes on expanditure, these are indirect tax. it is called indirect because its payed first to the suppliers(e.g resto) and they forward it to the government. These include purchase taxes such as sales tax or value added tax. (VAT) that is added to price of most goods and services.
3. taxes on business, such as taxes on the profits made by a company.
How does a government spend its money?
1. provide or purchase goods and services for the benefit of society.
2. purchase or construct hospitals, schools, growth, public libraries, etc.
3. subsidise the production of goods and services by business.
4. make transfer payments. so it is money that is transfered from one sector of society to another.
how do changes in taxation affect businesses?
1. if we increase income tax, mainly to reduce demand for goods and services. reduce levels of production and possible redundencies. reducing income tax may have the opposite intax.
2. if increasing indirect tax, would lead to an increase inprises and bussineses left to decide whether to pass increases to costumers, risking of fall in demand or they absorb the cost and suffer reduce profits.
3. increasing the levels of taxes on bussines has the effect of increasing cost and reducing profits. when that happen, either businesses cut cost in other areas such as employment but if they cut cost in areas like employment it leads to unemployment or they can increase price leading to inflation.
Activity
1.
1. taxation
2. public spending
They control the amount of money in circulation and estamating economic growth.
reasons why governments influence the economy of a country?
1. to ensure ensential goods and services are available to sections to community who need them.
2. to prohibit or control production of goods and services considered undesirable or harmful.
3. to regulae supplier activity and protect customer's interest.
4. help this advantage sections of community through taxation and walfare
5. to help supplier through grand and subsidies and improve trading conditions.
6. to encourage economic growth.
so goverments influenced the economy through two things:
1. physical policies
2. monotory policies
physical policies concerne with government income and public expanditur
while monotory policies it is concerne with the amount of money in stimulating
how does a government gets its money?
most important income source is taxation
3 main types of taxes:
1. Direct taxes, it is taxes on income. they reduce the amount of person keeps out of his or her earnings.
2. taxes on expanditure, these are indirect tax. it is called indirect because its payed first to the suppliers(e.g resto) and they forward it to the government. These include purchase taxes such as sales tax or value added tax. (VAT) that is added to price of most goods and services.
3. taxes on business, such as taxes on the profits made by a company.
How does a government spend its money?
1. provide or purchase goods and services for the benefit of society.
2. purchase or construct hospitals, schools, growth, public libraries, etc.
3. subsidise the production of goods and services by business.
4. make transfer payments. so it is money that is transfered from one sector of society to another.
how do changes in taxation affect businesses?
1. if we increase income tax, mainly to reduce demand for goods and services. reduce levels of production and possible redundencies. reducing income tax may have the opposite intax.
2. if increasing indirect tax, would lead to an increase inprises and bussineses left to decide whether to pass increases to costumers, risking of fall in demand or they absorb the cost and suffer reduce profits.
3. increasing the levels of taxes on bussines has the effect of increasing cost and reducing profits. when that happen, either businesses cut cost in other areas such as employment but if they cut cost in areas like employment it leads to unemployment or they can increase price leading to inflation.
Activity
1.
Monday, 10 March 2014
Public Enterprise (Unit: Organization)
the key objective provides services, essential to the welfare of the country, services are paid through taxation. projective two: protect indrustries and jobs that are vital to the country.
3. Control natural monopolies. so consumers are not exployeted. some public services such as libraries, may not be provided if people had to buy the service individually.
Other public services such as national defense must be provided to everyone or not at all. When it comes to business, public enterprise are not normally expected to make profit. but a few might make a surplus of revenue over expenditure and it is kept by the government.
Non-profit making organizations
these includes charities and voluntary organizations. they may be national, theres a objective to fullfil a social need or provice help to a specific session to a community, they do not make a profit.
Changing and conflicting objectives
would you recommend burning the chemical or the non-polutant fuel
I would choose what will give more profit. if it spoil the environment i would take action to control pollution.
Objectives and Stake Holders
the objectives of a business are influenced by it stakes holders. Stake holders, are not the same between share holders. Share holders are individual and organizations that own shares in a company. So share holders are the owner of the company while stake holders are all individuals and groups that have an interest in the activity of a business.
E.g who are the stake holders? stake holders include customers and consumers. so we are stake holders. workers, managers, owners, those with a financial interest,the community as a whole, the government. So stake holders are internal. such as employee and managers while others are externals. such as consumers, and those with a financial interest.
The extent to which the objectives of all stake holders, have been achieved is a measure of the sucess of a business.
Country U is in recession. the government has decided to increase he size of the public setor.
(a) what is meant by the term 'public sector'
(b) Identify and explain two objectives that public sextor enterprises usually have.
Answer:
(a) the public sector is sometimes reffered to as the state sector and is a part of the state deals with the production, delivery of goods and services and for the government or its citizens.
(b) the main objectives of public sector is ensure the essential goods and services are available for everyone equally. (2) equal rights, for example, national security has to be given to everybody or not at all.
Mission statement is a statement of the general purpose and aims of a business.
3. Control natural monopolies. so consumers are not exployeted. some public services such as libraries, may not be provided if people had to buy the service individually.
Other public services such as national defense must be provided to everyone or not at all. When it comes to business, public enterprise are not normally expected to make profit. but a few might make a surplus of revenue over expenditure and it is kept by the government.
Non-profit making organizations
these includes charities and voluntary organizations. they may be national, theres a objective to fullfil a social need or provice help to a specific session to a community, they do not make a profit.
Changing and conflicting objectives
would you recommend burning the chemical or the non-polutant fuel
I would choose what will give more profit. if it spoil the environment i would take action to control pollution.
Objectives and Stake Holders
the objectives of a business are influenced by it stakes holders. Stake holders, are not the same between share holders. Share holders are individual and organizations that own shares in a company. So share holders are the owner of the company while stake holders are all individuals and groups that have an interest in the activity of a business.
E.g who are the stake holders? stake holders include customers and consumers. so we are stake holders. workers, managers, owners, those with a financial interest,the community as a whole, the government. So stake holders are internal. such as employee and managers while others are externals. such as consumers, and those with a financial interest.
The extent to which the objectives of all stake holders, have been achieved is a measure of the sucess of a business.
Country U is in recession. the government has decided to increase he size of the public setor.
(a) what is meant by the term 'public sector'
(b) Identify and explain two objectives that public sextor enterprises usually have.
Answer:
(a) the public sector is sometimes reffered to as the state sector and is a part of the state deals with the production, delivery of goods and services and for the government or its citizens.
(b) the main objectives of public sector is ensure the essential goods and services are available for everyone equally. (2) equal rights, for example, national security has to be given to everybody or not at all.
Mission statement is a statement of the general purpose and aims of a business.
Monday, 3 March 2014
Grace.
1. Profit : a financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something.
2. Increasing sales revenue : the amount a businesss get by seling his goods or services
3. gaining and larging market share : expanding your business
4. Growth: to enjoy the economies of scale this means they are able to produce their goods and services for a lower cost.
5. Providing employment: small businesses are often set up in order to provide employment for their owners
6. Survival: If a business is in difficulty it may have to put all it's efforts, into simple survival.
Exercise :
(financial advisor)
I understand that you need a job to provide for your family and that you want to be a beautician.
It's important to know about your aim because being the only provider in your family will need an objective as clear as possible. Of course you want a lovely salon, saddling yourself with a large debt payment when you're just opening is a recipe for sleepless nights. Strike the right balance. Save your valuable pennies for promoting your salon. So if you're thinking about starting your own hair or beauty salon I will help you see the way forward. Think about:
- your financial resources
- range and level of services you offer
- your client base
- marketing activity
- salon team
Clients are not mind-readers, you have to communicate with them cleary and often.
Okay goodluck, bye.
2. Increasing sales revenue : the amount a businesss get by seling his goods or services
3. gaining and larging market share : expanding your business
4. Growth: to enjoy the economies of scale this means they are able to produce their goods and services for a lower cost.
5. Providing employment: small businesses are often set up in order to provide employment for their owners
6. Survival: If a business is in difficulty it may have to put all it's efforts, into simple survival.
Exercise :
(financial advisor)
I understand that you need a job to provide for your family and that you want to be a beautician.
It's important to know about your aim because being the only provider in your family will need an objective as clear as possible. Of course you want a lovely salon, saddling yourself with a large debt payment when you're just opening is a recipe for sleepless nights. Strike the right balance. Save your valuable pennies for promoting your salon. So if you're thinking about starting your own hair or beauty salon I will help you see the way forward. Think about:
- your financial resources
- range and level of services you offer
- your client base
- marketing activity
- salon team
Clients are not mind-readers, you have to communicate with them cleary and often.
Okay goodluck, bye.
Tuesday, 25 February 2014
Chapter 9
Large scale retailing
advantages of retailing on a large scale :
Large scale retailers with many branches have a large turn over. This enables them to buy in bulk directly from the manufacture and thus obtain goods at discounted prices. This enables them to charge lower then average prices to consumers. They can also offer special promotions and lost leaders to their costumers.
Large scale retailers can afford specialist employees. Buyers who purchase for the company as a whole, accountants who monitor cost, estate managers, and surveyers who look for suitable sites. within a large shop, employees may specialise. Hence, becoming more effiencients at what they are doing.
Retailing on a large scale enables greater use of computerized system. Stock control can be more accurate and money is not wasted on surplus stock. Breaking bulk and re-packaging can be under taken there. So large scale retailers can have their own delivery vehicles. These will be used to supply their shops and also increasingly to deliver to costumer who have purchased online. Since large scale retailers have enermous purchasing power these companies can lay down specific standards for their supplyers and insist that they are maintainent.
Many large scale retailers are public limited companies. This makes it possible for them to raise the large amount of capital necessary for setting up and expanding their retail businesses.
The major advantage of large scale retailing is economist of scale, the benefits of size. As the business becomes larger, the cost per unit such as advertising and wages fall.
Disanvatages on a large scale :
The growth of large scale retailing has meant a decline in personal services for the consumers. Most large scale retailers use of service methods but many of these retailers are not recognizing the need for some form of costumer contact and are introducing some counter service and information desk in their shops.
Many consumer complain about products being standardise and mass produce. often the products are free package and it is difficult to buy individual items. large scale retailers have high overheads or cost. They have large wage bills as they often employ over 100 people both fulltime and part time in one individual shop.
Effects on suppliers, wholesalers, other retailers and consumer.
Many large scale retailers are very powerful with huge buying budgets. Often their suppliers are small producers who become reliant upon the large order place by these retailers. Large scale retailers often insist on a particular quality of products at very low prices.
How do small scale retailers survive againts competition from large scale retailers. although the share of the retail market taken by small scale retailers has fallen, many small scale retailers survive and very profitable. They have been able to adabt to the change in consumer taste and expectation or they have been lucky to serve an area that is not threaten by the opening of large retail shops. They often know preferences of regular customers. they provide quality service with a welcoming atmosphere, clean premises and clear displays. Small scale retailers often buy cash and carry warehouses. These warehouses offer self service to the retailer but provide no credit facilities and no delivery services.
advantages of retailing on a large scale :
Large scale retailers with many branches have a large turn over. This enables them to buy in bulk directly from the manufacture and thus obtain goods at discounted prices. This enables them to charge lower then average prices to consumers. They can also offer special promotions and lost leaders to their costumers.
Large scale retailers can afford specialist employees. Buyers who purchase for the company as a whole, accountants who monitor cost, estate managers, and surveyers who look for suitable sites. within a large shop, employees may specialise. Hence, becoming more effiencients at what they are doing.
Retailing on a large scale enables greater use of computerized system. Stock control can be more accurate and money is not wasted on surplus stock. Breaking bulk and re-packaging can be under taken there. So large scale retailers can have their own delivery vehicles. These will be used to supply their shops and also increasingly to deliver to costumer who have purchased online. Since large scale retailers have enermous purchasing power these companies can lay down specific standards for their supplyers and insist that they are maintainent.
Many large scale retailers are public limited companies. This makes it possible for them to raise the large amount of capital necessary for setting up and expanding their retail businesses.
The major advantage of large scale retailing is economist of scale, the benefits of size. As the business becomes larger, the cost per unit such as advertising and wages fall.
Disanvatages on a large scale :
The growth of large scale retailing has meant a decline in personal services for the consumers. Most large scale retailers use of service methods but many of these retailers are not recognizing the need for some form of costumer contact and are introducing some counter service and information desk in their shops.
Many consumer complain about products being standardise and mass produce. often the products are free package and it is difficult to buy individual items. large scale retailers have high overheads or cost. They have large wage bills as they often employ over 100 people both fulltime and part time in one individual shop.
Effects on suppliers, wholesalers, other retailers and consumer.
Many large scale retailers are very powerful with huge buying budgets. Often their suppliers are small producers who become reliant upon the large order place by these retailers. Large scale retailers often insist on a particular quality of products at very low prices.
How do small scale retailers survive againts competition from large scale retailers. although the share of the retail market taken by small scale retailers has fallen, many small scale retailers survive and very profitable. They have been able to adabt to the change in consumer taste and expectation or they have been lucky to serve an area that is not threaten by the opening of large retail shops. They often know preferences of regular customers. they provide quality service with a welcoming atmosphere, clean premises and clear displays. Small scale retailers often buy cash and carry warehouses. These warehouses offer self service to the retailer but provide no credit facilities and no delivery services.
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