types of business
private sector
sole trader only one person owns and controls business
unlimited liability 若 钱 需 直偿还
partnership two or more people in partnership
limited company private iid only be sold to family and friends
Public pls freely on stockexchange
co operatives owned by members and each member have one ite
on major business decisions and issues
Public sector
State owned enterprises SOEs are large organisations that are created by
a country's government to carry out commercial activities
non for profit organisations do not have making a profit as a goal
charities eg Save the Children the Red Cross
reasons for ioint venture
The agreement may be for a specific project such as to share resources to
develop a new product
It could be to share ideas to advanced understanding between two
parties
Joint ventures up between a global business that wants to
are set
expand into a new market and a local business that has knowledge
,of that market
local company may gain business knowledge of how improve its
efficiency by working with this global company
It is designed to improve distribution of income and wealth in the
country A joint venturewill allow domestic firms to gain income
and wealth from foreign company
sizesof businesses
SME is one that employs fewer than 250 employees It should have
an 年
annua
营业 额
n òver of nut more than 50 million and an annual
Statement of Finiāivosition not higher than 43 million
A large corporation is one that has more than 250 employees an
annual turnover of more than 50 million and a Statement of
Financial Position of 43 million or higher
Organic growth simply refers to firms increasing their output
A merger is the joining together of two or more firms under commo
Ownership
A takeover implies that one company wishes to buy another company
,Forward vertical integration a supplier merging with one of its buyers such
as a car manufacturer buying a car dealership
Backward vertical integration a purchaser buying one of its suppliers such
as a drinks manufacturer buying a bottle manufacturer
horizontal integration a merger between two firms in the same industry
at the same stage of production
Conglomerate integration merging of two firms with no common interest
advantages and disadvantages of vertical integration
There
may be lost savings Integrating a supplier or a buyer into the firm
may make the firm more efficient
vertical integration may reduce risk
Forwardvertical integration could give a firm more control over its
market It could decide at what price to sell the product and in
what markets
Firms often pay too much for firm they take over and the shave
price of the firm falls rather than rises
There can be difficulties in merging two firms together into one
, firm
A firm making a vertical merger may have little expertise in that
particular industry Motor manufacturing has developed knowledge of
motor but it is unlikely to have that same level of knowledge in
selling cars
Many of key workers in the firm that has been taken over may leav
advantages and disadvantages of horizontal integration
It may allow reductions in average costs due to economies
of scale
It can reduce competition in the market by removing a competitor
The firm has an increased ability to ontrol prices in market
It can allow one firm to buy unique assets owned by anothe com
pa
It allows a business to
grow in a market where it already has knowledge
and expertise
Firms often pay too much for the firm they are buying
two firms is too often badly managed and many of
Integration of
the key workers may leave following the takeover
private sector
sole trader only one person owns and controls business
unlimited liability 若 钱 需 直偿还
partnership two or more people in partnership
limited company private iid only be sold to family and friends
Public pls freely on stockexchange
co operatives owned by members and each member have one ite
on major business decisions and issues
Public sector
State owned enterprises SOEs are large organisations that are created by
a country's government to carry out commercial activities
non for profit organisations do not have making a profit as a goal
charities eg Save the Children the Red Cross
reasons for ioint venture
The agreement may be for a specific project such as to share resources to
develop a new product
It could be to share ideas to advanced understanding between two
parties
Joint ventures up between a global business that wants to
are set
expand into a new market and a local business that has knowledge
,of that market
local company may gain business knowledge of how improve its
efficiency by working with this global company
It is designed to improve distribution of income and wealth in the
country A joint venturewill allow domestic firms to gain income
and wealth from foreign company
sizesof businesses
SME is one that employs fewer than 250 employees It should have
an 年
annua
营业 额
n òver of nut more than 50 million and an annual
Statement of Finiāivosition not higher than 43 million
A large corporation is one that has more than 250 employees an
annual turnover of more than 50 million and a Statement of
Financial Position of 43 million or higher
Organic growth simply refers to firms increasing their output
A merger is the joining together of two or more firms under commo
Ownership
A takeover implies that one company wishes to buy another company
,Forward vertical integration a supplier merging with one of its buyers such
as a car manufacturer buying a car dealership
Backward vertical integration a purchaser buying one of its suppliers such
as a drinks manufacturer buying a bottle manufacturer
horizontal integration a merger between two firms in the same industry
at the same stage of production
Conglomerate integration merging of two firms with no common interest
advantages and disadvantages of vertical integration
There
may be lost savings Integrating a supplier or a buyer into the firm
may make the firm more efficient
vertical integration may reduce risk
Forwardvertical integration could give a firm more control over its
market It could decide at what price to sell the product and in
what markets
Firms often pay too much for firm they take over and the shave
price of the firm falls rather than rises
There can be difficulties in merging two firms together into one
, firm
A firm making a vertical merger may have little expertise in that
particular industry Motor manufacturing has developed knowledge of
motor but it is unlikely to have that same level of knowledge in
selling cars
Many of key workers in the firm that has been taken over may leav
advantages and disadvantages of horizontal integration
It may allow reductions in average costs due to economies
of scale
It can reduce competition in the market by removing a competitor
The firm has an increased ability to ontrol prices in market
It can allow one firm to buy unique assets owned by anothe com
pa
It allows a business to
grow in a market where it already has knowledge
and expertise
Firms often pay too much for the firm they are buying
two firms is too often badly managed and many of
Integration of
the key workers may leave following the takeover
