Business keywords 0.0 / 5 ? Applied Businesskeywords and benefits and drawbacksASOCR Created by: closey2000Created on: 06-01-17 17:15 Partnership aadvantages discuss decisions,more finance, more expertise in the business and few legal requirments 1 of 28 Disadvantages igher prices and diseconomies of scale.might not prioritse cost control, 2 of 28 Diseconomies of scale When a business becomes to big, the cost per unit may increase and the business might become inefficient e.g. slower communication 3 of 28 Economies of scale cost advnatages gained when business grows such as suppliers offering discounts 4 of 28 financial position shows business assets, liabilities and owners capital 5 of 28 Disciplinary proedure process for dealing with alleged employee misconduct 6 of 28 Grievance procedure process that deals with complaints made by employee about treatment at work 7 of 28 Companies Act large companies need to included location of head office, name etc. 8 of 28 Diversificiation strategy for expansion into new markets, developing and selling products 9 of 28 Savings ad nothing has to be repaid and no interest has to pe paid 10 of 28 savings dis limited money can be invested 11 of 28 Retained and profit and reserves Reserves do not have to be repaid and no interest is payable 12 of 28 dis new businesses do not have the reserves for this 13 of 28 Overdraft advantages used for day-to-day running costs, and used to cover periods where money is going in and out of the business 14 of 28 dis interest is payable on the amount spent and expensive if used over a long period of time 15 of 28 Loan advantages Payments are spread out of a longer period of time which helps with cash flow 16 of 28 dis banks sometimes need security on loans such as tyeing them to assets and expensive if used over a long period of time 17 of 28 Mortgage advantages a business can use the product when they are paying their mortgage and payments are spread out so they can pay expensive propertys 18 of 28 dis if payments are not paid then property can be taken off the business and interest is really high due to long periods of payment 19 of 28 Credit card adv convenient, consumer protection and credit cards can allow free borrowing 20 of 28 dis interest rates are high if not paid in the free period and debts are easily racked up 21 of 28 Hire purchase buy assets with a deposit and pay in installments 22 of 28 adv use up to date equipment which are expensive, payments spread out and after final payment asset is owned 23 of 28 dis due to interest it is more expensive then paying with cash up front 24 of 28 Trade credit buy now ay later system with trade periods of 30, 60 or 90 days 25 of 28 ad you can pay later which helps with cash flow and no interest if paid in the agreed time 26 of 28 dis discounts offered will be lost if not paid on time 27 of 28 venture capitalist ad can offer good advice and can have good connections and additional resources are offered in relation to tax or personal matters 28 of 28
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