Businesses come in all shapes and sizes Flashcards
Sole Trader Definition
A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.
Small Medium Enterprise (SME) definition.
According to the EU, definition of an SME is a business with fewer than 250 employees, and a turnover of less than €50 million. Within this umbrella there are three different categories: medium-sized, small, and micro-businesses. These categories are defined by turnover.
What is meant by Large Companies / Enterprise?
a business that has more than 250 employees.
Public Sector definition?
A business that is controlled/funded by the Government. (e.g. Hospitals, Public Schools, Police etc.)
Not-for-profit meaning?
Types of organisations that do not earn profits for its owners. All of the money earned by or donated to a not-for-profit organisation is used in pursuing the organisation’s objectives and keeping it running.
What is a Charitable organisation?
An organisation set up to provide help and raise money for those in need.
What do Sole traders and SMEs have in common?
They want to return profit for their owners.
What consequences does the use of social media have on the budget of this business?:
Sole Trader
As there is only one person responsible for the money going in and out of the business, they will be responsible for their social media budget. It may not be viable for the business, due to their current position, or it may not pay off and result in more custom, meaning they will take a hit in their profits.
What consequences does the use of social media have on the budget of this business?:
SMEs
It will largely depend how big the SME is as to how much their social media budget will affect them, smaller enterprises will likely be affected in the same way as Sole Traders, but larger SMEs will likely have marketing teams in place with budgets for Social Media marketing. As such, they will be able to invest in Social Media and give their organisation a presence on these channels.
What consequences does the use of social media have on the budget of this business?:
Large Companies
It is more likely that these organisations will have the means to fund their own Social Media budgets. This will allow them to invest heavily into social media and allow them to start to dominate certain aspects of it.
What consequences does the use of social media have on the budget of this business?:
Public Sector
Any Social Media budget will be funded by the Government. As such a decision would have to decide whether to fund marketing for each particular business. Think about hospitals, most of the marketing is done by Public Health Wales or Health Boards, as opposed to individual hospitals, to save on the budgets for each individual business.
