Notes

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.

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. 

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. 

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.

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.

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. 

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.

Chapter 5: Retailer in the chain of distribution.

retailer is the person or organization who buys goodsfrom the manufacturers and wholesailers and sells them to the consumers. the retailer therefore comes between the wholesailer and the manufacturer in the chain of distribtion. so the retailer may own a shop that a consumer visit but increasingly the retailer provides home shopping for consumers who don't have time for the physical activity of shopping.

mail order shopping has always been important. however, with the broadining scope of information technology and the increasing use of computers, tellesels, and more especially online shopping have become increasingly important parts of retail trade.

services provided by retailers to consumers:

• providing consumers with conviniently sited shops. in a town, near other shops and near the customers homes. 
• providing goods and or services required by consumers. the retailer studies the needs and tastes of possible consumers and tries to offer what is required. 
• providing a white variety of goods so that the customers have choice and will not go elsewhere. 
• providing the goods when customer want thek]
• the retsiler may open during but 9 hrs to 5 hrs. incrasingly the reatailer will oopeb to sweep cusrtyomer needs to provifde food and newspaper befr people go to w0oed dmore people in many countries wish to go shppinh ]
• [rocvdijg goods that are suitable in wualuty sand quantity ad price dor consuner
• the word retail "meabs to cut up (into smaill quanrities)" the retauler breajs down tp singe items ti cisymerand then splits them into suitble sizes or units for the consuherfv .
• the reateler ,ust aso know the qualuty of the goods he proved. if the retaiuler is rich he w8llnsekll more expensiuve dstuff  
• providing delivery of goods. not akl retailers provide delivery sevices but a retauiler servubf furtinure or large electric woukd be expected to privw delivery services to consykjmwe gome otherwise he would make fw sales. in some countris supermarket offer delivery servies.. to give them a competitive age over their rivals. change in shopping habbits have meant that an increasing number of people order their weekly food from online shopping and it is delivered to their doorstep
• providing advise for purchases consumers shopping for specialised and expensive products such as cars photographic treatment and computer often require advise before making a purchase. the retailer is expected to have up to date information on the range of products sold and be able to introduce the costumer to the type of product required. 
• providing aftersale serivce. not every retailer need to provice service. after sell service may include repairs and maintanance aswell as delivery service. the carper services provides fitting services because a carpet is not used unless it is fitted. 
• many retailers selling computers, vehicle and television and service the product they sell. this type of aftersales service is not always saticfactiory and often expensive. but reliable after sell service can mean the enhaaosda reputation of the retailer and customer loyalti to that retailer. '

the loyalty ladder: one of buyer -? occcasional customers -> regular costumers -> recommenders of the company. 

 both in the windows and inside the shops. if goods are well displayed they all likely to attract attention and sell well. for example: clothing are easier to displh than others such as toilet and cosmetics. which nmay be too small to be easily seen

some form of communication describes as quick, fast, cheap, or easy without explanation of why this form of communication such as email are quick, fast, cheap, or easy. description of the way of adding value to raw materials which refers to expenses, cost and profit. It's processes involve such as designing, weaving, packaging and etc. that add value so that profits can be achieve. confusion between the words interelated and interdependant meaning dependent on one another and independent meaning operating on once own.

descrition of the ways of adding value to raw materials which refer to expenses cost and profit. the processes involve such as desgining, weaving, packaging that add value so that profits can be achieve.

confusion between the words inter-related and inter- dependant meaning dependant meaning dependant on one another and independent meaning operating on once own. the words are very simmilar so it is important that the distingtion is clearly understood.

The relationship between industry, commerce and direct services

industry, commerce and direct services are all important in their own right. there is a need for each one to be dependant on the others and to have a mutual relationship with one another. Many bussineses produced either raw materials or finished goods. 
without commerce, which helps the transfer of goods from the original producer to the final consumer, this businesses would not be succesful and only few goods would reach the final consumer. commercial services are therefore important at all stages of production. 

if no goods were produced there would be no need for the commercial activity. so industry and commerce are interelated and dependant on each other. this can be explained more clearly with the help with some examples 

• raw materials are extracted 
• the factory orders raw materials transported into a factory (using communication)
• the factory owner is buying the raw materials and pays for them using finance (trade)
• goods are manufactured distributed to whole salers and retailers 
• goods may be sold abroad (export trade) 
• raw materials may be bought from another country (import trade) 
• the retailers imforms consumer and persuades them to buy (advertising) 
• goods are kept by the wholesaller or retailer (storage in a ware house) 
• risk of extracting raw materials, risk of accidents in factories, risk of fire in warehouses or theaft from shops must be covered. (insurance)
• the consumer pays the retailers using banking services
• the retailer use a bank to save guard the money and may want a loan to expand the shop (finance) 

the interdependance of individuals and of countries aswell as industry and commerce  has increased for several reasons. the developments in commercial activities such as communication and transport has speaded up the transaction. the impact on commercial activity of computer technology and the internet has made it far easier to keep in contact with other bussineses. the growth of a world wide financial system has made it easier to pay across the continents. perhaps, more difficult to see how direct services are interelated with industry and commerce. most bussines people both in industry and commerce require several direct services without which their bussines would not prosper.

here are some examples: 

• architects to prepare drawings for a new factory 
• surveyers -> to examine the sight of the factory and to calculate the materials required 
• lawyers -> to draw up any legal documents if any land is purchased 
• accountants -> to prepare the accounts of the bussines and to eudit those accounts 
• security guards -> to protect the bussines againts thief and to look after the property after working hours 
• doctors and nurses to attend any accidents at the work place
• police to deal with any disturbance or demonstration outside the bussines 
• local goverment officials to consider planning application from bussineses and to handle complains from the public about poor quality goods or services 
• the fire services to attend an emergency on bussines premisses 
• businesses involved in industry and commerce may not require direct personal services at all times but for particular purposes they are very necessary. however, people who provide direct personal services may require many different types of tools or goods which they are unable to provide themselves. 
• they would require the commercial services to provice these goods to them, they may also require the commercial services to make them aware for goods produced for sale. so we can say direct services, commerce and industry are interdependent and interelated to each other. 

common learners errors 

• confusion between tertiary and direct services and between commercial and direct services. remember that tertiary services includes direct services which are directed at the person receiving them. 
• communication describes as the transport of goods.