IGCSE, A Level Business Student Forum

[KN] Market share does not tell us about its total success of the business in the markets.
[APP] For instance a small shoe brand might hold half of the local fashion market share however a big business may have a small share in that same area but earns much more.
[AN] Thus this give us a false ...

[KN] Capital employed can be misleading
[APP] For instance a big business like Nike uses labor for the production of their shoes and use very few machinery.
[AN] Thus this shows that using capital employed to measure can make the business look small or big than it is which can lead to a businesses ...

[KN] The large supermarket have the different obective than the small grocery because of the difference in their size.
[APP] For instance a large supermarket like Carrefour will have an objective of growth and Profit maximization however the small grocery shop like Guru mart will have the objective ...

[KN] Using the number of employees to compare business size can be misleading.
[APP] For instance big company like Nike earn in billions with few workers while a factory needs more emplyees to get the same output.
[AN] Thus this show that the comparisons is unfair and it also ignores the productive ...

[KN] During recession consumers income falls which will result in a fall in demand for the house.
[APP] For instance this will lead to the building company to face difficulties to sell newly build house
[AN] Which may result in them changing their objective of profit maximisation to survival ...

[KN] Most airlines are capital intensive
[APP] For instance Qatar airways has invested a lot not only on his arplanes but also airport lounges and maintanance facilities. This shows the total value of assets and investments made by the Qatar airway.
[AN] Thus this leads to customer satisfaction as ...

[KN] It is used to measure the size of a business because it shows how much revenue the business earns.
[APP] For instance a large business like Nike earns in millions which is far more than a normal local shoes business which may be facing hardship to meet cost.
[AN] Thus this shows that larger ...

[KN] Businesses which has larger numbers are usually bigger than those business that has smaller number of workers.
[APP] For instance a large shoes manufacturing company may have many emplyees in the business while on the ther hand a small and new shoes business would employ less workers as it is a ...

[KN] To protect jobs
[APP] For instance, a large private company is about to shut down , the government will buy it to make sure people wont loss their jobs.
[AN] Hence this helps to keep unemployment low and as people wont loss job and may get well paid as now under government their living ...

[KN] To ensure universal access.
[APP] For instance if a government is owned and controlled by a private sector it not only focus on giving great services but mostly on profit hence their prices are high however if it is owned and controlled by government anyone would be able to afford it as it is ...

[KN] Political interference
[APP] For instance, to gain more votes and support a government would keep the prices low to keep the people satisfied.
[AN] Thus this will lead to the businesses not making profit making it inefficiency, also the quality may fall over time leading to finance issue and ...

[KN] Private sector business are owned by individuals, whereas public sector business are owned and controlled by the government.
[APP] For instance, schools and hospitals are owned and controlled by government which provides the basic need of education and healthcare.
[AN] Thus this helps the ...

[KN] A business should register with authorities.
[APP] For instance, a new private company before setting up should register with SECP in Pakistan.
[AN] Thus the shareholders would trust more in investing in to the business moreover this can help the owner to get limited liability.
[KN] A business ...

[KN] To provide services to the general public.
[APP] For instance, a government will improve the services of public hospital leading to many people getting their basic healthcare.
[AN] Thus this will results in improvment in living conditions of people leading to better productivity which will lead ...

[KN] Sole traders which are new or small businesses face difficulties due to unlimited liability.
[APP] As banks do not easily lend to sole traders because of the small business size and there is a risk that they wont be able to pay back hence they will find it hard to raise finance.
[AN] Moreover a ...