applied business studies unit 2

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Christopher Creech                Unit 2; the school shop        


The wildest milkshake flavours around

My business is a milkshake bar called Shakey’s which is located in Hayes School. We sell a variety of milkshakes to students and teachers of Hayes School. The milkshakes we sell have a wide range of unusual but nice flavours like chocolate fudge brownie or galaxy chocolate instead of a plain normal chocolate milkshake.

Mission Statement

“At Shakey’s we aim to produce milkshakes of the best quality and taste to give pleasure to our customers. We want to become well known for excellence in Hayes School”

Smart objectives

  • To have broken even before Christmas.
  • Shakey’s should have at least sold products (milkshakes) to at least 10% of the students at Hayes School within the first two weeks.
  • To have 90% positive customer feedback on hygiene.
  • To achieve a 20% return on capital employed by December 2007
  • To make Shakey’s milkshakes the preferred drink of students and teachers in Hayes School by February 2008

Ownership and Legal issues

Sole trader - A person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business.

Partnership - A legal business relationship of two up until twenty people who share responsibilities, resources, profits, and liabilities.

Limited partnership - A legal partnership where some owners are allowed to assume responsibility only up to the amount invested.

Public Limited Company - A listed company whose shares can be bought by the public and whose share capital is not less than a statutory minimum, however not all PLCs are listed companies.

Private Limited Company - Registered company which has limited liability (the shareholders cannot lose more than their original shareholdings), and a minimum of two shareholders and a maximum of fifty. It cannot offer its shares or debentures to the public and their transfer is restricted. A private limited company is treated as a legal entity.

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Advantages of being a sole trader

Being a sole trader has advantages but also disadvantages the biggest advantages are; they are usually small businesses, so less money is required to set them up. I am not saying that being a small business is a good thing because it is not. It is good because it is cheap and easy to set up but not good as it is not like a big company earning millions. The owner is individually in charge so quick decisions can be made without having to consult others. The owner gets ...

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