IGCSE, A Level Business Student Forum

KN: Unlimited Liability
APP:Because BMT is a partnership, the two brothers have unlimited liability. This means they are personally responsible for all the business's debts.
AN:If BMT cannot pay for the imported watch parts or falls into financial trouble, the brothers might have to sell their own ...

KN: Difficult to raise money for expansion
APP:As a private limited company, PShirts is not allowed to sell shares to the general public on a stock exchange. If Paul needs money to start selling shirts in other countries, he can only get it from people he knows, like friends, family, or current ...

KN:Full control over decisions
APP:A sole trader has complete control over the business and does not need to consult partners or shareholders.
AN:A mobile phone retailer can quickly change prices, introduce new phone models, or offer discounts when new phones are released. Fast decisions help the ...

KN:Unlimited liability
APP:A sole trader has unlimited liability, meaning the owner is personally responsible for all business debts.
AN:As the grocery chain expands, it will need more stock, stores, and staff, which increases costs and risk. If the business fails or sales fall, the owner could lose ...

KN:Access to more sources of finance
APP:CHINO plans to open a new coal mine.This will involve high costs such as land, machinery, and safety equipment.All the coal will be exported, and CHINO does not want government support.
AN:Because CHINO is a public limited company, it can raise large amounts ...

KN: Limited liability
APP:Cutter is a private limited company, so the owners have limited liability. This means they will only lose the money they invested in the business if Cutter fails.
AN:Because Cutter makes luxury coats, production costs may be high. Limited liability reduces the owners ...

KN: Might lead to mistakes in the business
APP:Fines would reduce cash immediately, making Zoya’s cash-flow problem worse.
AN: A damaged reputation may also lead to fewer customers, reducing sales and profits in the long run.
KN:May have to change how products made
APP: Changing how jewellery is ...

KN: can get a chance of expanding his/her business
APP: wss had sold his franchise to the people in country Z which is beneficial for wss to expand the business to other countries and get a chance to make his restaurant known AS MNC'S restayrant
AN: Thus due to they will get a chance to gain ...

[KN] Nuwan business can offer more better customer service.
[APP] Nuwan’s specialist sports shop has three trained employees who can give adivics to the customers of differant niche such as cricket and tennis products.
[AN] This could lead to higher customer satisfaction and loyalty than other ...

KN] Entrepreneurs can use their own ideas when running a business.
[APP] Since Hameed designs unique furniture which gave him edge over the customers , as an entrepreneur it allows him to turn these ideas into products such as coffee tables and chairs.
[AN] This means his furniture may be superior ...

KN:Cost of Implementing and the Delivery Service
APP:Samira is getting fewer customers because other shops are competing with her. She wants to get 100 new customers by delivering food. If paying for delivery costs , she will not make any money because she is selling her food for $3 instead of $4 ...

[KN] Economics of scale will be achieved
[APP] As dowson bought matarial in bulk which will benifit them as they get matarial in low prices.
[AN] Thus, this would lead to increase in the profit margin of dowson and also decrease cost of production.
[KN] stronger market presence.
[APP] As dowson is ...

[KN] Increase in demand of soft drinks.
[APP] Since no of workers are doubled therefore we can there is more customers are buying softdrinks from business.
[AN] This may increase the market share of VXH.

[KN] Higher quality of drinks been offered to customers.
[APP] Since VXH employees are ...

[KN] To check if Kara's business has the ability to pay back the loan from expected profits
[APP]Kara's business is currently facing growing demand, and her revenue from last year was $50,000. However, the bank cannot depend on past revenue alone. She is not yet seeing benefits from economies of ...