Business studies lesson 4


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Business studies lesson 4

  1. 1. Business Computing <br />Aj Jamie<br />4/12<br />
  2. 2. Quiz Answers<br />Founded: To set up or create a company or organisation.<br />Commission: A fee for services rendered based on a percentage of an amount received or collected or agreed to be paid. EBay receives a small commission on every sale, less than 1%.<br />
  3. 3. Quiz Answers<br />What type of Business is EBay?<br />It is a service business<br />Provides an auction service to customers.<br />It is also a retail business<br />EBay also has online shops selling a variety of goods.<br />
  4. 4. Quiz Answers<br />Overhead Costs: refers to an ongoing expense of operating a business. The term overhead is usually used to group expenses that are necessary to the continued functioning of the business, but that do not directly generate profits. <br />Typical examples of overhead expenses include rent, utilities and permits to operate a business.<br />
  5. 5. Quiz Answers<br />Profit: <br />Profit = Revenue (money coming in) minus Costs (money going out)<br />EBay:<br />Revenue: $1032 million ($1.032 billion)<br />Costs: $509 million<br /> $186 million<br />Profit: $337 million <br />
  6. 6. Business Ownership<br />Here are some basic ways to run a<br />business.<br />Sole Proprietorship<br />General Partnership<br />Limited Partnership<br />Private Limited Company<br />Public Limited Company<br />
  7. 7. Sole Proprietorship<br />Janet Peters owns a small noodle shop in Central festival. She employs 2 members of staff, that work for her.<br />The Business is named PK NOODLES.<br />Janet pays all expenses herself and receives any profit the business makes. However, she must cover any losses the business may run up.<br />As Janet runs this business <br />ALONE this business is known <br /> as a Sole Proprietorship.<br />
  8. 8. General Partnership<br />Two years later and PK NOODLES is very successful. She decides to open another noodle shop in Big C.<br />Janet finds it hard to the accounting for PK NOODLES, and a friend John Martins decides to invest in the business and become an equal partner. <br />Janet concentrates on running the restaurant whilst John takes care of the accounts.<br />As TWO (or more) equal <br /> partners control the <br /> business, it becomes a <br /> General Partnership.<br />
  9. 9. Limited Partnership<br />PK NOODLES becomes even more successful. A new noodle store is opened in Hat Yai.<br />Janet and John decide to appoint 3 Limited Partners, who each own a small share in the company, but have limited control.<br />PK NOODLES is owned as follows:<br />Janet - 44% (General partner)<br />John - 44% (General partner)<br />3 Limited partners – 4% each<br />Janet and John are still the MAIN <br /> owners of PK NOODLES, but the <br /> limited partners are responsible<br /> for their share of any <br /> loss the company makes.<br />
  10. 10. Private Limited Company<br />Staff, friends and relatives see the success PK NOODLES is having.<br />Some ask Janet and John if they can purchase a SHARE in the company.<br />By purchasing SHARES in the company these people can make a profit if the business is successful.<br />However they can lose this money if the business fails. They ARE NOT responsible for any loss the business may suffer.<br />
  11. 11. Private Limited Company<br />Janet and John sell 10% of their shares each.<br />10 people buy 2 shares, each worth 1% of the company.<br />Janet and John are now the DIRECTORS of PK NOODLES, the rest of the owners become SHAREHOLDERS.<br />PK NOODLES is now a Private Limited Company.<br />
  12. 12. Public Limited Company<br />PK NOODLES is one of the most successful companies in Thailand. The DIRECTORS and SHAREHOLDERS think they can become an international business.<br />However to do this they need investment so they decide to sell shares to the public.<br />To do this they must register the company as a Public Limited Company.<br />
  13. 13. Public Limited Company<br />SHARES for PK NOODLES are traded on the stock market.<br />The business now has a responsibility for it’s shareholders. <br />The value of shares will <br /> go UP if the company <br /> does well, or DOWN <br /> if the company is <br /> doing poorly.<br />
  14. 14. Franchise<br />Franchising is a method of doing business where a business (franchisor) licenses (allows) proven methods of doing business to an individual or business (franchisee) in exchange for a payment, fees and a percentage of sales or profits. <br />For example, KFC in Thailand is run on a franchise business. A person will pay money to KFC in America and are given training, advertising and recipes in exchange.<br />
  15. 15. Communication<br />Internal Communication<br />Communicating with people INSIDE the company<br />Intranet, Internal Phone, Meetings, Conference calls, Email, EMeetings, Presentations<br />External Communication<br />Communicating with people OUTSIDE the company.<br />Internet, Phone, Email, Conferences, Presentations <br />
  16. 16. Task Today<br />Computers in Business Communications. <br />How can we use computers to help businesses communicate externally and internally?<br />Prepare a PowerPoint Presentation for next lesson.<br />This is your Before Mid Term Grade. If you have any questions please ask. If you are not able to present next lesson you will be marked DOWN.<br />