Business and Administration Course 2011/2012
Unit 1
Business (1) English Teacher Assistant:
Ms. Brittnee Gilleylen
Are these words familiar to you? Organization Goods Services Consumers Capitalist economies Privately owned Profit Wealth Not-for-profit State-owned Company Owners
What is a
business?
A business is any _____________ that makes
_________ or provides ___________ , or both to ___________.
What is a business? A business is any ORGANIZATION that makes
GOODS or provides SERVICES , or both to CONSUMERS.
Goods Are physical products, for example, 1 ____A car ____________ 2 ____A table ____________ 3 ____A pencil ____________
Services
Are non-physical items, for example, 1 ___Financial ______________ 2 ___Insurance ______________ 3 ___Administration ______________
Businesses capitalist economies. Most of them are privately owned They are administered to earn profit and increase the wealth of their owners. Are predominant in
Businesses Can also be not-for-profit or state-owned . A business owned by multiple individuals can be called a company.
What is it ?
A business organization Money gained in business A person who buys good or uses services Object or articles that are produced to be sold The state of being rich A company that is owned by private investors An economic system (the opposite of Communism) Not making or interested in making a profit An organized group of people, such as a club, society, union or business
Basic forms of ownership Can you give an example?
Sole proprietorship
A for-profit business owned by one person. The owner has unlimited liability.
Partnership
A for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability.
Franchising
Large companies that sell their names and products to smaller companies in order to make a profit
Basic forms of ownership Corporation or Company
Limited liability business that has a separate legal personality from its members.
Cooperative
Limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority.
Read below and find out what their advantages and disadvantages are Sole proprietorship: A sole proprietorship is a for-profit
business owned by one person. The owner can work on his or her own or can employ others. The owner of the business has unlimited liability for the debts made by the business. Partnership: A partnership is a for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts made by the business. Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-forprofit. The difference between a cooperative and a corporation is that the co-op has members, instead of share holders, so they can take the decisions themselves.
Now, test your knowledge ď‚— 1. What is the main advantage of being a sole trader? Unlimited liability Limited liability Be able to make quick decisions
ď‚— 2. Who is limited liability an advantage to? Shareholders Stakeholders Sole traders
ď‚— 3. What is a partnership? A business owned by shareholders One person trading alone Two or more individuals trading together
Testing your knowledge ď‚— 4. Who controls a company ? Shareholders Stakeholders Managers ď‚— 5. What legal identity does a company have in the eyes
of the law?
No legal identity Its own legal identity As shared legal identity with shareholders ď‚— 6. What is a business that sells the right to use a business
idea?
A franchisor A franchise A franchisee
Testing your knowledge ď‚— 7. Which of the following is NOT an advantage offered by a
franchise?
A prime location A tested product A well known brand
ď‚— 8. Which type of business does NOT usually have limited
liability?
A public limited company A multinational A partnership
ď‚— 9 . Who has legal responsibility to settle debts in a
company with unlimited liability?
Owners Shareholders Stakeholders
Business and Administration Course 2011/2012
Unit 1
Business (2) Departments
How can we organize a business? DEPARTMENTS
Marketing
Sales
Accounting
ACTIVITIES To increase brand awareness To create an advertising campaign To change the image of the company’s star product Andalusia’s sales are going down There is a distribution problem in Asturias There is not enough money to give a pay rise To reduce payment terms To speed up the billing process
How can we organize a business? DEPARTMENTS
ACTIVITIES
Purchasing
There is not any paper left for the printer There is a problem with the new photocopier The big boss needs some new furniture
Human Resources
There is a selection process
Administration
There are last month’s reports to be filed There are lots of new product codes to be entered into the system There are next month’s billing to be
Departmental fun
Activity
Marketing How many people are there working in marketing?
Fifteen How many main marketing projects are there at the moment? Three Is there a project to reduce brand awareness? No, it is to increase brand awareness Are there enough people? No
Sales When is there a sales department meeting?
9:30 a.m. How many main points are there on the agenda? Three Is Asturias the first point on the agenda? No, Andalusia Is there enough money to give everyone a pay rise? No
Accounting How many main accounting projects are there at
the moment? Two Is the first project to increase payment terms? No, it is to reduce payment terms How many weeks are there left to finish the first project? Two Is there enough time? No
Purchasing How many suppliers are there coming to visit the
purchasing manager? Three Is there enough paper for the printer? No Is there a problem with the photocopier? Yes, it is not working Why is the third supplier coming? To talk about some new furniture for the big boss
Human Resources Is there a vacancy in the R&D department?
No, the vacancy is in the IT department How many people are there coming for an interview? Two Are there any doubts about one of the candidates? Yes, his CV is brilliant but he’s not working at the moment Who is Martin’s favourite?
The second person R&D (Research and Development) IT (Information Technology)
Administration How many people are there normally in the
Administration Department? Five Where’s Layla? In London How many tasks are there to be completed today? Three Are there any reports to be completed? Yes, last month’s reports