3.1 - nature of business Flashcards
Corporate objectives
Goals of the business as a whole.
Functional objectives
Goals for each department.
Mission statement.
Overall purpose of a business.
4 Different types of objectives
Profit, Growth, Survival and Cash Flow
Not for profit business objectives?
Social and ethical
Variable costs
Change with output.
Fixed costs
Don’t change with output.
Limited liability
Owners aren’t personally responsible for debt.
Unlimited liability
Business and owner are seen as one so business debts become personal debts of the owner.
Sole trader
Individual trading in their own name. Self employed.
Partnership
Two or more people working together.
Ltd (priv limited company)
Cant sell shares to the public.
Public limited company (PLC)
Can sell shares to the public.
Shares
Sold by companies to raise capital.
Market capitalisation
Total value of all shares issued by a company.
