Businesses

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