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WebDesPix Ltd case study questions. What does the name WebDesPix Ltd tell you about the ownership of the company?

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Introduction

WebDesPix Ltd case study questions 1. What does the name WebDesPix Ltd tell you about the ownership of the company? It tells us that it is a private limited company; this means that it is in the private sector and it must have the letters 'Ltd' after its name. The main features of a private limited company include: * It is owned by the shareholders. * It is controlled by the board of directors. * It is managed by appointed managers. * Finance can be gained by borrowing from banks or selling shares. * The profits go to the shareholders of the company, in the form of dividends. 2. Give (2 or more) reasons why they may have decided on this type of company? This type of business is more expensive to set up than a sole trader or a partnership, however: * It carries less financial risk for the owners as they have limited liability, which means that if the company goes bust, they only lose the amount of money that they invested in the company and not their personal possessions. * Limited companies are also incorporated which means that the company has a separate legal identity from its owners. Which means that it is the company that can be sued or sue, not the owners. ...read more.

Middle

6. All their products are marketed online. Explain 3 advantages of this when compared to selling from a shop on the high street. Firstly, buying and selling products online is called e-commerce. The advantages of this include: * Websites can be used to reach wider markets; this means that the internet provides extra marketing possibilities. * The internet can be accessed all over the world-this makes it possible to target potential customers in foreign countries. * A company can put marketing material on its own website, or it could pay to advertise on other websites. * A good website can really help a firm's competitiveness and increase its market share. * Firms can market and sell goods through their website 24 hours a day, 7 days a week ('24/7'). * By using the strategy of marketing and selling '24/7', it can give e-commerce firms an advantage over the traditional 9-5 businesses, as customers can shop at home, at a time which is convenient to them. 7. The company wants to build up their brand name. List 3 advantages of having a strong brand name. * Businesses will hope that this leads to brand loyalty, where customers will repeat-buy because they prefer the look, taste, quality or image of their products. ...read more.

Conclusion

Explain one advantage of giving these employees commission. This system ensures that employees have to work hard to earn their pay, but if they are successful, their earnings can be unlimited. 18. Give one disadvantage of giving them commission. If they fail to meet the required turnover or sales figures, they receive no commission. 19. List 2 advantages of using email. * It is quick and easy to send emails, as it allows communication easily over a number of sites. * People can keep in touch very easily-as many messages can be sent. * Messages can also be keyed-in and stored until they are needed. * One email can be sent to a number of different people at the same time. * They are very convenient, as multiple attachments can be sent. * It is easier to refer back to emails rather than looking through different pieces of paper. 20. Explain why the company might use video conferencing. Video conferencing is fast becoming more and more popular with companies. It involves using computer links and closed-circuit television, allowing people to hear and see each other. The advantages include: * Saves people travelling to meetings. * Large savings can then be made in terms of time and cost. * Face-to-face communication is possible rather than using telephone or letter. ?? ?? ?? ?? 1 ...read more.

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