M4 - Business Studies - Lesson 3
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Transcript of M4 - Business Studies - Lesson 3
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Business Computing
Aj Jamie4/12
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Quiz Answers
• Founded: To set up or create a company or organisation.
• 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%.
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Quiz Answers
• 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. • Typical examples of overhead expenses
include rent, utilities and permits to operate a business.
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Quiz Answers• Profit:
• Profit = Revenue (money coming in) minus Costs (money going out)
• EBay:• Revenue: $1032 million ($1.032 billion)• Costs: $509 million• $186 million• Profit: $337 million
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Business Ownership
Here are some basic ways to run abusiness.
• Sole Proprietorship• General Partnership• Limited Partnership• Private Limited Company• Public Limited Company
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Sole Proprietorship• Janet Peters owns a small noodle shop in
Central festival. She employs 2 members of staff, that work for her.
• The Business is named PK NOODLES.• Janet pays all expenses herself and receives
any profit the business makes. However, she must cover any losses the business may run up.
• As Janet runs this business ALONE this business is known as a Sole Proprietorship.
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General Partnership• Two years later and PK NOODLES is very
successful. She decides to open another noodle shop in Big C.
• 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.
• Janet concentrates on running the restaurant whilst John takes care of the accounts.
• As TWO (or more) equal partners control the business, it becomes a General Partnership.
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Limited Partnership• PK NOODLES becomes even more successful. A new
noodle store is opened in Hat Yai.• Janet and John decide to appoint 3 Limited
Partners, who each own a small share in the company, but have limited control.
• PK NOODLES is owned as follows:• Janet - 44% (General partner)• John - 44% (General partner)• 3 Limited partners – 4% each
• Janet and John are still the MAIN owners of PK NOODLES, but the limited partners are responsible for their share of any loss the company makes.
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Private Limited Company• Staff, friends and relatives see the
success PK NOODLES is having.• Some ask Janet and John if they can
purchase a SHARE in the company.• By purchasing SHARES in the company
these people can make a profit if the business is successful.
• However they can lose this money if the business fails. They ARE NOT responsible for any loss the business may suffer.
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Private Limited Company• Janet and John sell 10% of their shares
each.• 10 people buy 2 shares, each worth 1%
of the company.• Janet and John are now the DIRECTORS
of PK NOODLES, the rest of the owners become SHAREHOLDERS.
• PK NOODLES is now a Private Limited Company.
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Public Limited Company• PK NOODLES is one of the most successful
companies in Thailand. The DIRECTORS and SHAREHOLDERS think they can become an international business.
• However to do this they need investment so they decide to sell shares to the public.
• To do this they must register the company as a Public Limited Company.
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Public Limited Company• SHARES for PK NOODLES are traded on
the stock market.• The business now has a responsibility
for it’s shareholders. • The value of shares will
go UP if the company does well, or DOWN if the company is doing poorly.
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Franchise• 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.
• 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.
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Communication• Internal Communication
• Communicating with people INSIDE the company
• Intranet, Internal Phone, Meetings, Conference calls, Email, EMeetings, Presentations
• External Communication• Communicating with people OUTSIDE the
company.• Internet, Phone, Email, Conferences,
Presentations
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Task Today• Computers in Business Communications. • How can we use computers to help
businesses communicate externally and internally?
• Prepare a PowerPoint Presentation for next lesson.
• 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.