Last Updated 24 Mar 2020

Nature of a Business

Category business 
Essay type Research
Words 594 (2 pages)
Views 297

Business Studies PART 1 A) Social Function of a business: [Choice] Businesses provides goods and services to satisfy individual needs and wants by giving the choice of selecting something among a variety of products. Economic Function of a business: [Employment] By creating or providing employment for individuals this minimises the unemployment rate.

Don't use plagiarized sources. Get Your Custom Essay on

Nature of a Business

just from $13,9 / page

get custom paper
. PART 2 A) Stakeholders: People who are or may be affected by business activities. B) Possible stakeholders; [Employees] loss of jobs therefore they are unemployed and won’t have a source of income. [Competitors] more firms may purchase their product as the operations are closing down C) Stakeholders responsibilities; Society/General public] Stakeholders in business should have ethically responsible decisions as good corporate citizens. Society expects businesses to give back to the community of what they make out of profits. For example the Body shop organises community projects such as charity. How Lelouch and his minions was ethically responsible by being a good corporate citizen by giving back to the community of the profits by destroying Britannia as charity. PART3 [Environment] They must consider the impacts on the environment as we should care and preserve our environment.

Thus businesses are turning to ecologically sustainable operating practices in response to climate change and destruction of our natural environment. For example Levis has developed its own environment philosophy and principles and conduct business with following those regulations Example Q&A A) What is the difference between a sole trader and partnership A sole trader is owned and operated by one person taking care of all responsibilities whereas a partnership consists of 2-20 people to form a business together and share the responsibilities and problems in the business.

B) 2 Advantages and 2 disadvantages operating a partnership as opposed a sole trader [POOL CONTINUITY] It’s advantageous to be in a partnership compared to a sole trader as partnerships will be able to pool their funds and skills together to establish a business and on a death of one partner, the business can continue with the other partners [DISPUTES DEBTS] It’s disadvantageous to be in a partnership as there could be possible disputes between partners and may have a liability for all the debts including the partners.

PART4 A) Consumers- Because there are many competitors in the industry it may be difficult for new business to have consumers buy the products they offer as there are a different range of products available to them at competitive prices and quality. Consumers [CPR CPQ] Finance- Thus financing the business can also be a challenge like a domino effect one thing effects another as they aren’t making enough profits to keep the business up and running and may not be able to keep employees. Finance [DP BE]

B) External Influences [CSI] [SCA] [BEBQ] can include competitive situation influences [CSI] as this allows their business to aim for a sustainable competitive advantage [SCA] over their competition as this is a strategy to ensure that they ‘beat’ their competitors over a long period of time, by stimulating an efficient production of better quality products or services. C) Internal influences [LCV] can include location as a prime location can lead to higher levels of sales and profits because of its convenience and visibility to the public

Remember. This is just a sample.
You can get your custom paper from our expert writers

get custom paper

Cite this page

Nature of a Business. (2016, Dec 10). Retrieved from https://phdessay.com/nature-of-a-business/

Not Finding What You Need?

Search for essay samples now

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Your Deadline is Too Short?  Let Professional Writer Help You

Get Help From Writers