revenue is the total income for products you sell
calcualted by quantity sold x adverage selling price
Thursday, 5 January 2012
what is a profit and why are they importent?
Money made from sales minus overheads
These are importent as they can be used externally or internally within the business, they could be used to buy to assets to expalnd the business or used to widen the range of products within the business.
These are importent as they can be used externally or internally within the business, they could be used to buy to assets to expalnd the business or used to widen the range of products within the business.
Why do business' only pay careful attention to their shareholders rather than their stakeholders?
- improving tge quality of life for employees is not the firms responsibility and is likely to involve unsessesary training and better conditions
-depends what managers believe are importent
- A firm should not worry about the enviroment or the community unless the law says it has to, any changes in its production oricess are less likely to be importent.
- Shareholders are in their best interest as they are the ones providing and keeping the company running
-depends what managers believe are importent
- A firm should not worry about the enviroment or the community unless the law says it has to, any changes in its production oricess are less likely to be importent.
- Shareholders are in their best interest as they are the ones providing and keeping the company running
What is a shareholder?
Some form of ownership in public and limited company, some contribution to decision businesses will make and profits you gain, more money= more shares.
For each stakeholder group how can they impact upon a business?
Customers- sales, customer servicwm effect market share and growth of a particular market, effect cometitors, effect the repuation of the business according to their attitude to the customers.
Goverment- Licensisng, grants and also tax
Investors- keep the business going start up
suppliers- If there is more demand there is going to be more supply therefore if there was no suppliers the business would go into decline
Goverment- Licensisng, grants and also tax
Investors- keep the business going start up
suppliers- If there is more demand there is going to be more supply therefore if there was no suppliers the business would go into decline
What are stakeholders? How do internal and external stakeholders differ?
People who have possible interest on the sucess or failure in a business.
eg. customers , goverment, competitors, investors, employees, pressure groups (influence businesses to change policys) suppliers, media, banks and lending organisiations, shareholders.
Internal stakeholders are people who work directly within the business.
These includes:
- employees
- management
External stakeholders are people who are not directly working within the business but are affected in some way from the decisions of the business.
These includes:
- customers
- suppliers
- local communities
- future generations
eg. customers , goverment, competitors, investors, employees, pressure groups (influence businesses to change policys) suppliers, media, banks and lending organisiations, shareholders.
Internal stakeholders are people who work directly within the business.
These includes:
- employees
- management
External stakeholders are people who are not directly working within the business but are affected in some way from the decisions of the business.
These includes:
- customers
- suppliers
- local communities
- future generations
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