Explain the difference between capital and revenue items of expenditure and income P2 Capital Income Capital income is the money invested by owners or investors that fund the setting up of a business. The source of capital income is influenced by the type of business. Sole trader is a business which is owned individually, meaning their capital income comes from their own money (savings) or personal loans. Partnership is when between two and twenty people join to form a business as partners. Each partner should be the source of capital income. Partners of the business share the profit and decisions that need to be made regarding the business. Limited companies get capital income depending on whether they are public or private limited Fixed assets are the items within a business which stay in the business for a lengthy period of time. Examples of fixed assets are offices, land, buildings, machinery and vehicles. Intangibles are assets which are owed to the business. There are three main intangibles which exist in a business, goodwill, patents and trademarks. Goodwill is what value a brand has due to its reputation, established customer base, clients and name. The price of an existing business will depend on these factors. Patents is the legal protection of an invention, the business will have a patent to protect their idea from being copied by another business or entrepreneur. Trademarks are anything that sets apart ones business’s goods from one of its competitors including, logo, symbol, brand name, colours and slogans. Revenue Expenditure Revenue expenditure is spending on items on a day to day or regular basis. These are the expenses which are included on the business’s profit and loss account. These expenses include premises costs, administrative costs, staff costs, selling and distribution costs, finance costs, purchase of stock. Premises costs are something every business has. Rent is paid when a business does own the premises and has to pay the owner a regular amount of money for its use. Rates are the business equivalent to council tax to the local authority. The money goes to the local council but the amount is fixed as it depends on the business’s size and
Scenario Task 2 P2 - Describe the different stakeholders who influence the purpose of two contrasting businesses. Using diagrams and boxes identify and describe the key stakeholders for the British Museum and Fern Howard The British Museum Fern Howard Customers- The customers want to see when they visit the museum, high quality artefacts. Customers- The customers want high quality lighting at competitive prices so that they get the best value for money. Governments- The Government…
P2: Explain how to build cohesive teams that perform well A cohesive team is a group of people working together effectively to achieve strategic aims and goals. The team has to make sure that they have a well-defined roles and group, common goals, good working relationship, positive energy, shared responsibility and respect etc in order to have a good cohesive team. On the other hand to create a cohesion team, everyone needs to be working on the same page when it comes to team goals, because if…
List of issue Briefing sheet for recruitment panel (P2) Explanation of the key points Examples of how of the issues discrimination can occur Consequence Legal The European working time directive The Employment Act 2002 & 2008 The National Minimum Wage The Work and Families Act 2006 This is the working time directive, the at to protect a workers health and safety requiring EU countries to guarantee acts such as -Limit to working hours (must not exceed 48 hours on average) -Rest break during…
Learner’s Name Course Cambridge Technical Level 3 Introductory Diploma in Business Unit Number(s) & Title(s) Unit 2 Business Resources Assessment Title Managing Resources Assessment Number 1 of 2 Date of Issue w/c 12/01/15 Tutor’s Name P. Cropper, J. Chandi, A.Gupta Main Hand in 13/02/15 Feedback Date 09/03/15 Update Hand in 20/03/15 Grading criteria covered within this assessment P1, P2, P3 &M1 Internal Verification Assignment Brief Name: A Gupta Signature: Date:12th Jan 15 Assignment…
School of Business and Leisure BTEC National Diploma in Business – Feedback and Review Sheet Student Name: Unit 30 Business and the Economic Environment Assignment: One Assessor Hand out Date Hand in Date: Assignment Internally Verified by – Name: Signature: OUTCOME(S) 1 Investigate the impact on businesses of changes in levels of business activity 2 Consider the impact on businesses of changes in European, national and local government…
(Barcode) Assignment nos: (Barcode) Assignment Title / number Introduction to the nature of business and ownership/1.1 Date Set: 10/9/13 Deadline Date: Stamp(s)‘received’ 9/10/13 Student Name & S number: IV signature & date for brief: Learning Outcomes: 1.Understand the purpose and ownership of business Unit 1 Criteria covered in this assignment: P1, P2, M1 Criteria met: Assessor Signed: Date: (if 2nd submission needed) Criteria still…
Assignment brief – QCF BTEC Assignment front sheet Qualification Unit number and title Level 3 90 Credit Diploma in Business 1: The Business Environment Learner name Assessor name Lorraine Schofield Date issued Hand in deadline Submitted on 18th November 2014 16th December 2014 Assignment title Two Contrasting Organisations In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. Criteria…
To end the dependence of child labor in mines and prostitution the Tanzanian government must first address the issue of poverty in Mererani, Tanzania. The town produces a 300 million dollar business because it is the only place to find the rare Tanzanite gem. The children working in the mines do not see any of the money collected for these gems. The lucky ones work for a dollar a day, most go without pay or food for days on end. When mining is not an option women, and female children turn to…
How to achieve P2 Thursday 18th December BTEC Business P2 Criteria Explain the role of promotion within the marketing mix for a selected product/service 1. We need to provide some reasons and go into detail 2. Promotion’s connection to the other parts of the marketing mix 3. Focus on one product from a business What the examiner recommends • For P2, the activity may be connected to the promotion of a selected product as part of the application of the marketing mix as organisations select price…
Why is it that a profit maximizing businessman would always raise prices when facing an inelastic demand curve but might or might not raise price when facing an elastic demand curve? Explain and justify your answers in detail. Elasticity and profit maximization behavior When facing an inelastic demand curve, a profit maximizing businessman would always raise price because increase in price will bring about increase in total revenue. On the other hand, when facing an elastic demand curve, he might…
