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.
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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
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