repaso p2.docx

**Sole Traders** - **Definition:** A sole trader is someone who runs a business by themselves. - **Benefits:** - **Full control:** You make all the decisions. - **Keep all profits:** You keep all the money the business makes. - **Simple to start:** It's easy and cheap...

**Sole Traders** - **Definition:** A sole trader is someone who runs a business by themselves. - **Benefits:** - **Full control:** You make all the decisions. - **Keep all profits:** You keep all the money the business makes. - **Simple to start:** It's easy and cheap to set up. - **Limitations:** - **Full responsibility:** You're responsible for any debts. - **Workload:** You have to do everything by yourself. - **Limited growth:** It's harder to expand without help. **Partnerships** - **Definition:** A partnership is a business owned and run by two or more people. - **Benefits:** - **Shared work:** Partners share the workload and responsibilities. - **More ideas:** Different partners bring different skills and ideas. - **Shared costs:** Partners can share the costs of running the business. - **Limitations:** - **Shared profits:** Earnings are divided among partners. - **Disagreements:** Partners may disagree on business decisions. - **Joint liability:** Partners share responsibility for any debts. **Companies** - **Definition:** A company is a business that is separate from its owners, with its own legal identity. - **Benefits:** - **Limited liability:** Owners (shareholders) are not personally responsible for the company's debts. - **Easier to raise money:** Companies can sell shares to raise funds. - **Continues even if ownership changes:** The company keeps going even if owners leave. - **Limitations:** - **More rules:** Companies must follow strict regulations. - **Complicated setup:** It's more complex and expensive to start a company. - **Less personal control:** Decision-making can be spread out among many people. **STEEPLE Factors** - **Definition:** STEEPLE is a tool to examine external factors that can affect a business. - **S**: Social -- Changes in society, like age, lifestyle, and culture. - **T**: Technological -- New technology that could help or hurt the business. - **E**: Economic -- The overall economy, such as inflation, unemployment, and interest rates. - **E**: Environmental -- How environmental issues, like climate change, impact the business. - **P**: Political -- Government policies and political stability. - **L**: Legal -- Laws that the business needs to follow. - **E**: Ethical -- Moral issues, like fair treatment of workers and customers. **Sampling Methods** - **Definition:** Sampling methods are ways to pick a small group of people to study from a larger population. - **Benefits:** - **Cost-effective:** It's cheaper than studying everyone. - **Time-saving:** You can gather information faster. - **Limitations:** - **Less accurate:** The small group might not perfectly represent the whole population. - **Bias risk:** If the sample isn't chosen carefully, the results could be misleading. **Primary Research** - **Definition:** Primary research involves collecting new data directly from sources. - **Benefits:** - **Specific data:** You get exactly the information you need. - **Current:** The data is up-to-date. - **Limitations:** - **Expensive:** It can cost a lot to gather new data. - **Takes time:** It can take a long time to collect the data. **Secondary Research** - **Definition:** Secondary research involves using existing data collected by others. - **Benefits:** - **Cost-effective:** It's cheaper because the data already exists. - **Quick:** You can access data quickly. - **Limitations:** - **Less specific:** The data might not be exactly what you need. - **Potentially outdated:** The information might be old or not current. **Economies and Diseconomies of Scale** - **Economies of Scale:** - **Definition:** As a business grows and produces more, it can reduce its costs. - **Benefits:** - **Lower costs:** Larger production can lead to lower costs per unit. - **Increased efficiency:** Bigger businesses can often operate more efficiently. - **Limitations:** - **Complexity:** Managing a larger business can be more complicated. - **Diseconomies of Scale:** - **Definition:** When a business becomes too large, costs per unit can start to increase. - **Limitations:** - **Higher costs:** Bigger size might lead to inefficiencies, like communication problems. - **Slower decision-making:** More people involved can slow down decisions. **Production Methods** - **Definition:** These are different ways businesses produce goods or services. - **Job production:** Making one item at a time, often customized (e.g., handmade furniture). - **Batch production:** Producing a group of items together (e.g., baking a batch of cookies). - **Mass production:** Making large quantities of the same item on an assembly line (e.g., cars). - **Benefits:** - **Efficiency:** Certain methods, like mass production, can be very efficient. - **Customization:** Job production allows for highly customized products. - **Limitations:** - **Cost:** Job production can be expensive and time-consuming. - **Inflexibility:** Mass production lacks flexibility if changes are needed.