1. what is a business
   1. businesses supply goods or services
   2. advantage of owning a business:
   3. profit
      1. make more than they would as an employee
         1. be your own boss
            1. job your interested in
2. private and public sector
   1. need profit to breakeven. especially in the private sector or public sector: there to provide services to the community.
   2. other aims:
   3. high quality, excellent customer service, image and repuatation, develop new prodcuts ahead of com[etitors, offer diverse range
   4. set pbjectives to meet aims
3. social and ethical objectives
   1. social- benefiting society or peoples needs.
   2. ethical- based on moral principles about how businesses treat people and the environment
   3. non profit- organistations like charities or social enterprises, achieve social and ethical objectives
   4. for profit- focus on profit, although social and ethical objectives are becoming increasingly important. people are more likely to buy if they have good practice.
   5. revenue= selling price x quantity if units sold
   6. costs
      1. fixed-don't change with output
         1. rent, fixed salaries, new machinery
   7. variable- rise and fall as output changes hourly wages, raw materials, packaging costs
      1. hourly wages, raw materials, packaging costs
   8. total variable costs= variable costs per unit x number if units sold
   9. semi varaible costs have fixed and varaible parts e.g. telephone bills- have to pay amount for phoneline+ variable depending on how many calls are made.
   10. total costs= fixed costs+ varaible costs
   11. profit= revenue - costs
4. objectives
   1. corporate objectives= goals of the business as a whole. new shop owners might want survival whilst international compaines want growth and diversity in product range
   2. functional objectives= specific to each department. more detailed than corporate and help achieve them.
   3. mission statement , corporate aims and functional objectives
   4. motivating and help in decision making having a direction
   5. managers can compare performance with objectives to measure success and review decisions.
   6. personal objectives for employees example is increase sales from 20 to 25 a day
      1. specific, measurable, agreed , realistic, timely measurable
   7. different type of objectives
   8. profit- increase profitability, so minimise cost or increase sales
   9. growth- could be revenue, market share or expanding
   10. survival- continue trading and have enough money , often key for new businesses or during recessions or if strong competitors
   11. cash flow objectives- improving cash flow for a greater chance of survival have enough working capital
5. misson statement
   1. intention of a business- overall purpose or corporate aim
   2. make all stake holders aware, encourage employees to work towards it- give staff a purpose, value, standards, startgery, customers and USP
   3. beliefs- ethics and principles
   4. But don't have to prove what they say is accurate but this is a bad practice as damaged caused if customers find actions don't reflect values- bad rep