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