Unit 1

Business (1)English Teacher Assistant: Ms. Brittnee Gilleylen

Business and Administration Course 2011/2012

Are these words familiar to you?OrganizationGoodsServicesConsumersCapitalist economiesPrivately ownedProfitWealthNot-for-profitState-ownedCompanyOwners

What is a business?A business is any _____________

that makes

_________ or provides ___________ ,

or both to ___________.

What is a business?

A business is any ORGANIZATION that makes

GOODS or provides SERVICES ,

or both to CONSUMERS.

GoodsAre physical products, for example,1 ____A car ____________2 ____A table ____________3 ____A pencil ____________

ServicesAre non-physical items, for example,1 ___Financial ______________2 ___Insurance ______________3 ___Administration ______________

BusinessesAre predominant in capitalist

economies.Most of them are privately owned They are administered to earn profit and

increase the wealth of their owners.

BusinessesCan also be not-for-profit or state-

owned .A business owned by multiple individuals can

be called a company.

What is it ? A business organization Money gained in business A person who buys good or uses services Object or articles that are produced to be

sold The state of being rich A company that is owned by private investors An economic system (the opposite of

Communism) Not making or interested in making a profit An organized group of people, such as a club,

society, union or business

Basic forms of ownershipCan you give an example?

Sole proprietorship

A for-profit business owned by one person. The owner has unlimited liability.

Partnership

A for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability.

Franchising

Large companies that sell their names and products to smaller companies in order to make a profit

Basic forms of ownershipCorporationor Company

Limited liability business that has a separate legal personality from its members.

Cooperative

Limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority.

Read below and find out what their advantages and disadvantages areSole proprietorship: A sole proprietorship is a for-

profit business owned by one person. The owner can work on his or her own or can employ others. The owner of the business has unlimited liability for the debts made by the business.

Partnership: A partnership is a for-profit business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts made by the business.

Corporation: A corporation is a limited liability business that has a separate legal personality from its members.

Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-for-profit. The difference between a cooperative and a corporation is that the co-op has members, instead of share holders, so they can take the decisions themselves.

Now, test your knowledge1. What is the main advantage of being a

sole trader? Unlimited liabilityLimited liabilityBe able to make quick decisions

2. Who is limited liability an advantage to? ShareholdersStakeholdersSole traders

3. What is a partnership? A business owned by shareholdersOne person trading aloneTwo or more individuals trading together

Testing your knowledge4. Who controls a company ? ShareholdersStakeholdersManagers

5. What legal identity does a company have in the eyes of the law?

No legal identityIts own legal identityAs shared legal identity with shareholders

6. What is a business that sells the right to use a business idea?

A franchisorA franchiseA franchisee

Testing your knowledge7. Which of the following is NOT an advantage

offered by a franchise? A prime locationA tested productA well known brand

8. Which type of business does NOT usually have limited liability?

A public limited companyA multinationalA partnership

9 . Who has legal responsibility to settle debts in a company with unlimited liability?

OwnersShareholdersStakeholders

Business and Administration Course 2011/2012

Unit 1

Business (2)

Departments

How can we organize a business?DEPARTMENTS

ACTIVITIES

Marketing To increase brand awarenessTo create an advertising campaignTo change the image of the company’s star product

Sales Andalusia’s sales are going downThere is a distribution problem in AsturiasThere is not enough money to give a pay rise

Accounting To reduce payment termsTo speed up the billing process

How can we organize a business?DEPARTMENTS ACTIVITIES

Purchasing There is not any paper left for the printerThere is a problem with the new photocopierThe big boss needs some new furniture

Human Resources

There is a selection process

Administration

There are last month’s reports to be filedThere are lots of new product codes to be entered into the systemThere are next month’s billing to be completed

ActivityDepartmental fun

MarketingHow many people are there working in

marketing?Fifteen

How many main marketing projects are there at the moment?

ThreeIs there a project to reduce brand

awareness?No, it is to increase brand awareness

Are there enough people?No

SalesWhen is there a sales department

meeting?9:30 a.m.

How many main points are there on the agenda?

ThreeIs Asturias the first point on the agenda?

No, AndalusiaIs there enough money to give everyone a

pay rise?No

AccountingHow many main accounting projects are

there at the moment?Two

Is the first project to increase payment terms?

No, it is to reduce payment termsHow many weeks are there left to finish

the first project?Two

Is there enough time?No

PurchasingHow many suppliers are there coming to

visit the purchasing manager?Three

Is there enough paper for the printer?No

Is there a problem with the photocopier?Yes, it is not working

Why is the third supplier coming?To talk about some new furniture for the

big boss

Human ResourcesIs there a vacancy in the R&D department?

No, the vacancy is in the IT departmentHow many people are there coming for an

interview?Two

Are there any doubts about one of the candidates?

Yes, his CV is brilliant but he’s not working at the moment

Who is Martin’s favourite?The second person

R&D (Research and Development)IT (Information Technology)

AdministrationHow many people are there normally in

the Administration Department?Five

Where’s Layla?In London

How many tasks are there to be completed today?

ThreeAre there any reports to be completed?

Yes, last month’s reports