Business Studies- Judging Success Flashcards
The success of the business can be judged in different ways. The main approaches are:
profit, size, product quality, social responsibility and consumer satisfaction.
Many owners set objectives when running their businesses. This makes it easier to judge success. For example, a business may plan to grow its market share by 5%. If, by the end of the trading year, market share has grown by 6.5%, the business would be judged…
successful.
It is not uncommon for businesses to fail. This means…
they are no longer able to trade because they are making a loss on the run out of cash.
When a large company is about to fail it may go into…
administration. This means that an independent group of specialists is appointed to run the business. They try to save the business by making changes such as selling unprofitable sections and laying off workers.
However, if the business cannot be saved the business may going to…
liquidation. This means the business will be closed down and all of its assets sold off.
