Business Computing

Aj Jamie4/12

Quiz Answers

• Founded: To set up or create a company or organisation.

• Commission: A fee for services rendered based on a percentage of an amount received or collected or agreed to be paid. EBay receives a small commission on every sale, less than 1%.

Quiz Answers

• Overhead Costs: refers to an ongoing expense of operating a business. The term overhead is usually used to group expenses that are necessary to the continued functioning of the business, but that do not directly generate profits. • Typical examples of overhead expenses

include rent, utilities and permits to operate a business.

Quiz Answers• Profit:

• Profit = Revenue (money coming in) minus Costs (money going out)

• EBay:• Revenue: $1032 million ($1.032 billion)• Costs: $509 million• $186 million• Profit: $337 million

Business Ownership

Here are some basic ways to run abusiness.

• Sole Proprietorship• General Partnership• Limited Partnership• Private Limited Company• Public Limited Company

Sole Proprietorship• Janet Peters owns a small noodle shop in

Central festival. She employs 2 members of staff, that work for her.

• The Business is named PK NOODLES.• Janet pays all expenses herself and receives

any profit the business makes. However, she must cover any losses the business may run up.

• As Janet runs this business ALONE this business is known as a Sole Proprietorship.

General Partnership• Two years later and PK NOODLES is very

successful. She decides to open another noodle shop in Big C.

• Janet finds it hard to the accounting for PK NOODLES, and a friend John Martins decides to invest in the business and become an equal partner.

• Janet concentrates on running the restaurant whilst John takes care of the accounts.

• As TWO (or more) equal partners control the business, it becomes a General Partnership.

Limited Partnership• PK NOODLES becomes even more successful. A new

noodle store is opened in Hat Yai.• Janet and John decide to appoint 3 Limited

Partners, who each own a small share in the company, but have limited control.

• PK NOODLES is owned as follows:• Janet - 44% (General partner)• John - 44% (General partner)• 3 Limited partners – 4% each

• Janet and John are still the MAIN owners of PK NOODLES, but the limited partners are responsible for their share of any loss the company makes.

Private Limited Company• Staff, friends and relatives see the

success PK NOODLES is having.• Some ask Janet and John if they can

purchase a SHARE in the company.• By purchasing SHARES in the company

these people can make a profit if the business is successful.

• However they can lose this money if the business fails. They ARE NOT responsible for any loss the business may suffer.

Private Limited Company• Janet and John sell 10% of their shares

each.• 10 people buy 2 shares, each worth 1%

of the company.• Janet and John are now the DIRECTORS

of PK NOODLES, the rest of the owners become SHAREHOLDERS.

• PK NOODLES is now a Private Limited Company.

Public Limited Company• PK NOODLES is one of the most successful

companies in Thailand. The DIRECTORS and SHAREHOLDERS think they can become an international business.

• However to do this they need investment so they decide to sell shares to the public.

• To do this they must register the company as a Public Limited Company.

Public Limited Company• SHARES for PK NOODLES are traded on

the stock market.• The business now has a responsibility

for it’s shareholders. • The value of shares will

go UP if the company does well, or DOWN if the company is doing poorly.

Franchise• Franchising is a method of doing business

where a business (franchisor) licenses (allows) proven methods of doing business to an individual or business (franchisee) in exchange for a payment, fees and a percentage of sales or profits.

• For example, KFC in Thailand is run on a franchise business. A person will pay money to KFC in America and are given training, advertising and recipes in exchange.

Communication• Internal Communication

• Communicating with people INSIDE the company

• Intranet, Internal Phone, Meetings, Conference calls, Email, EMeetings, Presentations

• External Communication• Communicating with people OUTSIDE the

company.• Internet, Phone, Email, Conferences,

Presentations

Task Today• Computers in Business Communications. • How can we use computers to help

businesses communicate externally and internally?

• Prepare a PowerPoint Presentation for next lesson.

• This is your Before Mid Term Grade. If you have any questions please ask. If you are not able to present next lesson you will be marked DOWN.