Classifications of businesses
- Created by: Ali Bland
- Created on: 04-03-15 17:42
View mindmap
- Clasification of businesses
- Stages of production
- Primary
- Involves extracting raw materials eg farmers
- Secondary
- Uses raw materials to manufacture goods eg factories
- Tertiary
- Provides a service for its customers e.g. tescos
- Primary
- How can the size of a business be measured?
- Sales turnover/ sales income/ sales revenue
- Gross profit
- Net profit
- Number of employees
- Why can this be misleading?
- Capital intensive businesses have less employees
- Labour intensive businesses have more employees
- Why can this be misleading?
- What are the two types of business growth?
- Internal
- More staff are hired and equipment
- External
- Where a business merges with or takes over another organisation
- Internal
- Economies of scale
- The advantages gained from a business getting bigger. The cost of producing each product fails
- Diseconomies of scale
- The disadvantages gained from a business getting bigger. The cost of producing each product rises
- Types of economies of scale
- Technical
- Managerial
- Financial
- Purchasing
- Marketing
- Risk bearing
- Types of diseconomies of scale
- Coordination diseconomies
- Communication diseconomies
- Motivation diseconomies
- Stages of production
Comments
No comments have yet been made