Getting Started Flashcards
Forms of Ownership
Sole trader
Partnerships
Limited companies
Co-operatives
Sole traders
Own and manage their own business
Partnerships
Where two to twenty people are in a business together in order to make a profit
Limited companies
Businesses registered with the companies Registration office that are owned by investors called shareholders
Co-operatives
Businesses that are democratically owned and controlled by their members who may be the firm’s workers, suppliers or customers
Factors to consider when choosing a source of finance
Purpose Amount Costs in interest repayments Control - loss of ownership Risk
Job production
Producing a single product at a time, usually customized to meet the needs of a particular customer
Wedding dress
Advantages and disadvantages of job production
Easier to customize
Problem in one product does not affect rest
Degree of employee involvement Increase job satisfaction
Need highly skilled, Flexible workforce
Expensive for customers
Hard to find a replacement customer
Batch Production
Manufacturing a limited number of identical goods at the same time
Cakes, bread
Advantages and disadvantages of batch production
Workers don’t need to be as skilled
More efficient and less wasteful
Less cost of production
More equipment
Requires better management skills
Mass production
The continuous production of large quantities of identical goods
Very highly automated
Paper
Corn flakes
Advantages and disadvantages of mass production
Reduced cost and selling price
Heavy financial investment required
Breakdowns and delays affect everything else
Repetitive work decreases staff morale
Features of job production
Specific requirements
Highly skilled workforce
Expensive product
Deposit
Features of batch production
Produced for stock
Average quality products
Mixed workforce
Features of mass production
Price is low
Huge quantity of products produced
Specialised equipment
Unskilled assembly line
