AQA GCSE Business Studies -Unit 1

1. Sole Traders
   1. Advantages
      1. Easy to set up
      2. You are your own boss
      3. You decide how to spend profit
   2. Disadvantages
      1. Long hours
      2. Unlimited liability
2. Partnerships
   1. Between 2-20 people
      1. All have an equal say in the business
   2. Advantages
      1. More owners = more ideas
      2. More owners = More people to share work
      3. More capital to put into the business
   3. Disadvantages
      1. Each partner is legally responsible for what every other partner does.
      2. Most have unlimited liability
      3. Easily led to disagreements
3. Limited Companies
   1. Private Limited Companies
      1. Advantages
         1. LIMITED LIABILITY
         2. Independant
         3. Owned by shareholders
         4. Dividends paid to shareholders
         5. Separate legal identity
         6. Maximum of 50 people
      2. Disadvantages
         1. Maximum of 50 people
         2. Expensive to set up
         3. Have to publish financial informatilon
   2. Public Limited Companies
      1. Advantages
         1. Easy access to shares as can be sold on stock market
         2. Large amount of capital can be raised and easy access to it
         3. Anyone can buy shares
         4. Run by board of directors
         5. Shareholders can have a vote and a say in how the business is run
         6. LIMITED LIABILITY
            1. If there are issues such as a loan not geting paid back,then the company is in trouble and NOT the owners
      2. Disadvantages
         1. Anyone can buy shares
         2. Complicated
         3. Lots of rules and regulations
         4. Expensive
         5. Hard to manage effectively
         6. Greater risk of takeover
         7. Legally obliged to publish accounts

Annotations:

• The legal right to use the name, logo and products of a firm.

1. Advantages
   1. Less risk
   2. Wider marketing
   3. Training
   4. Increase market share
2. Disadvantages
   1. Can't create new products
   2. Pre-established rules
   3. Possible chance of poor reputation

1. Survival
2. Profit

   Annotations:

   • The money left after all costs are taken from revenue
3. Growth
4. Market Share

   Annotations:

   • The proportion of total market sales sold by one business
5. Environmental sustainability

   Annotations:

   • This is about minimizing the impact of the firm's activities on the environment.
6. Ethical Considerations

   Annotations:

   • Thinking about whether the company acts in such a way that society believes is morally right
7. Customer Satisfaction

   Annotations:

   • This measures how happy consumers are with the products and services provided by the firm
8. Aims are long-term goals for a business
9. Objectives are short-term goals that businesses set to help them to achieve their aims

Annotations:

• Anyone who is affected by a business

1. Different Stakeholders have different ideas of success
   1. Emplyees

      Annotations:

      • They are interested in job security and promotional prospects.
   2. Suppliers

      Annotations:

      • If the business is successful then they will gain more revenue as the business will be buying more supplies from them.
   3. The Local Community

      Annotations:

      • If the business is successful then it may expand, this will create new jobs for the people in the community.