business katrina Flashcards
sole trader
one person owning a business with ability to hire employees but with unlimited liability
Ltd
owned by shareholders, however shares can’t be bought on stock market. This type of business has limited liability
Plc
a company with limited liability which is owned by shareholders and shares can be bought by everyone on the stock exchange. It has legal obligation of publishing all the documents and this type of business can also be taken over
difference betwee private and public sector
- private - owned by people
- public - owned by government
3 types of sectors
- primary - extracting resources
- secondary - processing raw materials
- tertiary - selling or servicing
7 operational objectives
- value added
- quality
- speed
- flexibility
- dependability (reliability)
- environmental targets
- low unit cost
difference between productivity and efficiency
productivity measures the speed and efficiency measures the resources
disadvantages of being capital intensive
- redundancies negatively affect the reputation
- maintenance of the machinery costs
- less flexibility
for what types of businesses, operating at max capacity might be bad
- hospitals
- charities
- governmental structures
4 drawbacks of 100% capacity
- inability to meet surge in demand
- factory space is overcrowded - decrease of labour productivity = diseconomies of scale
- staff is overworked, less motivation = lower quality
- difficult to maintain high level of service
difference between quality control and quality assurance
- quality control checks the quality of already produced goods
- quality assurance prevents the reduction of quality before the goods are produced
disadvantages of quality assurance
- decreases flexibility
- requires good HRM
- requires trained and skilled workers
disadvantages of quality control
- time-consuming
- increases waste
- difficult to inspect all the products
activities that don’t add value to the production process
- holding stock
- repairing faulty products
- unnecessary movement of people
- overproduction
effective lean production requires:
- good relationships with suppliers
- committed, skilled, motivated workers
- a culture of quality assurance
- trust between management and employees
