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Chart Increasing

Unit 1 - Introduction To Business Management - QB

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Briefcase

Unit 2 - Human Resource Management - QB

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Money Bag

Unit 3 - Finance & accounts - QB

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Direct Hit

Unit 4 - Marketing - QB

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Factory

Unit 5 - Operations management - QB

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Bar-Chart

Unit 6 - Assessment

<ul>
	<li>Main Types of Profit-making Organizations:
	<ul>
		<li>Sole Traders</li>
		<li>Partnerships</li>
		<li>Privately Held Companies</li>
		<li>Publicly Held Companies</li>
	</ul>
	</li>
</ul>

Objective? Make that sweet, sweet profit! 🍯💰

<ul>
	<li>Profit Formula: ������=�������������(�����)&minus;����������Profit=TotalRevenues(Sales)&minus;TotalCosts</li>
</ul>

Note: This is a simplified version, but it&#39;s a good start! Real-world accounting can be like navigating a maze.

<ul>
	<li>Characteristics:
	<ul>
		<li>Usually small-scale businesses.</li>
		<li>Ends when the sole trader retires or kicks the bucket.</li>
		<li>Often niche-focused; don&rsquo;t always want or need to grow.</li>
	</ul>
	</li>
</ul>

Real-world example: Think of Mrs. Johnson who sells homemade candles at your local market. She&#39;s a sole trader.

<ul>
	<li>
	Shareholders

	<ul>
		<li>Get dividends (a share of the profit based on number of shares they own).</li>
		<li>Limited liability: If things go south, they only lose their investment, not their personal assets.</li>
	</ul>
	</li>
</ul>

Real-world example: If MegaCorp Inc. owes billions and goes bankrupt, Mr. Smith who owns 50 shares won&#39;t need to help pay off MegaCorp&#39;s debts.

<ul>
	<li>
	Advantages of Being a Company

	<ul>
		<li>Separate legal existence. The business keeps on rolling even if owners pass away.</li>
		<li>Boosts business status. It&#39;s like a badge of honor.</li>
		<li>Great way to raise funds.</li>
		<li>Easier to get loans or financial support.</li>
	</ul>
	</li>
</ul>

Tidbit: Transitioning to a company often marks a business glow-up!

<ul>
	<li>Differences Between Private &amp; Public Companies:

	<ul>
		<li>Public companies have stricter reporting requirements.</li>
		<li>Private companies keep more secrets and are generally smaller.</li>
	</ul>
	</li>
</ul>

Real-world example: Mars, Incorporated makes your favorite chocolates 🍫, and even though it&#39;s HUGE, it&#39;s still privately held. Mind-blown, right?

<ul>
	<li>Shareholders might lose control: More owners mean more opinions.</li>
	<li>Real-world example: Mr. Brown owned 100% of Brownie Inc. After going public, he only owns 10%. He still loves brownies but has less say in the recipes.</li>
	<li>Kiss your secrets goodbye: Public companies have to share a lot, like performance data.</li>
	<li>Stock market = Wild Ride: Share prices can plummet for all sorts of reasons, even if the company is doing everything right.</li>
	<li>Real-world example: If there&#39;s an unexpected economic crash, BlueTech Corp. might see its share price drop even if they&#39;re launching cool new tech.</li>
	<li>Anyone can buy you out: If your share price is low, competitors might buy a lot of your shares and take over.</li>
</ul>

Golden Nugget: Whether you&#39;re a sole trader like Mrs. Johnson or a massive privately held company like Mars, the business world is an exciting adventure.

&nbsp;

Happy studying! 🌟📘

Exploring Common Types Of Profit-Based Organizations

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Standard Level

Business Management SL

Unit 1 - Introduction To Business Management - QB

Exploring Common Types Of Profit-Based Organizations

Table of content

Overview

Understanding profit

Sole traders 🚶

Unlock the Full Content!

Unit 1 - Introduction To Business Management - QB

Exploring Common Types Of Profit-Based Organizations

Table of content

Overview

Understanding profit

Sole traders 🚶

Unlock the Full Content!