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Business Aims

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Introduction

Business Studies Sekariya Sultan 31/10/06 Business Aims are general statements about what a business intends to do. Here are some examples of the aims of the business: Profits: Most businesses aim to make profits. Some businesses try to make as much profit as possible. They are known as PROFIT MAXIMISERS. Others just try to make a satisfactory profit. Profit is the reward to the owner for running the business. If the business is not making profit then the owner would feel the need to close down and invest their money in something that will give good returns. Many business start up and closedown very quickly because of lack of profits. Business operators have to work very hard to make profits. This aim can be achieved in many ways one is to improve the service bringing you more customers and to keep costs down and to charge to a price that will make the customers want to buy the product but will also be enough to cover costs and still have money remaining. The choice will depend on the views of the owners of the business. E.g. McDonalds, aims for fat profits from big burgers. McDonald's introduced a giant burger 40% bigger than a Big Mac and as more customers like the idea the more profit they'll get by selling these. Survival: Sometimes the main aim is to 'stay in businesses New businesses are often risky because someone setting up for the first time may lack experience. ...read more.

Middle

A maximum of 20 partners is allowed in general partnership, Accountants and estate agents can have more than 20. Advantages of Partnership It is an easy way to bring in extra money if a sole trader wants to expand a business. Two or three people can raise more money than one person to start a new business if there are more than 20 partners then large amount of money can be brought into the business. The cost are shared, it is cheaper for five doctors to share premises than for each of them to have their own practise. All problems, management and responsibility are shared; this may allow them more time or leisure. It's also easier to make decision by two or more partners than by yourself. The business details of the partnership can be kept private. Accountants are not published so no one except the tax authorities can find out how much profit the business is making or how much the partners are earning. Disadvantages of Partnership One common disadvantage is that each partner has unlimited liability, so a partner can lose all of his personal wealth even though the problem had nothing to do with him each partner have a share in the business and all is effected. Someone owed money by the business can sue the partnership or choose to sue just one partner, if that partner had to pay a debt, they would have to get the other partners to pay up their share of the money owed. ...read more.

Conclusion

The shares are not sold back to the co-operative. They share profits in the form of dividends. Members have a say in running the business by voting at the Annual General Meeting (AGM). The AGM covers the same kind of business as that of a limited company. Voting is different from that of a limited company in that members have one vote each, no matter how many shares they have. Examples of co-operative businesses are co-operative bank which can be found at www.co-operativebank.com and coop Travel Shop also known as co-op Travel can be found at www.cooptravelshop.co.uk etc. The three types of co - operatives Retail Co- operative societies, Worker co- operatives and marketing co-operatives. They can be found in the UK. Most towns and cities in the UK have retail co-operatives, whose members include the customers. Co-operatives share many aspects of a limited company, they have limited liability and a separate legal existence from their members, and that is, they are incorporated. The members provide the money by buying shares. The shares are not sold back to the co-operative. They share profits in the form of dividends. Members have a say in running the business by voting at Annual General Meeting (AGM). The AGM covers the same kind of business as that of a limited company. Voting is different from that of a limited company in that members have one vote each, no matter how many shares they have. Co-operatives are still an important form of business, though they are more common in other countries, especially less-developed countries. ...read more.

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