Business
Unit 1 M1 & M2
M1 Contrast the ownership and purposes of two different business organisations
M2 Compare areas of growth or decline in the primary, secondary and tertiary classifications of business activities.
For M1 and M2 you have been asked to complete the tables below to be used in an information leaflet about businesses.
M1:
What is their ownership type and purpose?
Why are franchises and charities the same or different?
Business number one:
KFC
What type of ownership does this business have? Explain this type of ownership in detail.
To open and run up a business that is already open is a Franchise. A Franchise is when a franchisee asks a franchisor if they are allowed to sell their products and use their company name.
What are the positives of this type of ownership?
One of the advantages of this is that other banks would like to give money or loans to Franchise. Another positive aspect of this is that they make a profit of 91% in their reports. Also they are much known and as a result the business format is proven and is fully established.
What are the disadvantages and of this type of ownership? One disadvantage is that they are required to invest in a very large financial investment. An example could be £100,000. Another disadvantage about a Franchise is that you have to pay the franchisor a percentage of your profit. Also you will have no guarantee to work which isn’t very good.
What is the purpose of the business?
The purpose of this Franchise is that they compete with other businesses and they have good quality items and services they provide for the customers. Another purpose is that they are there for a profit. They also have easily and recognisable products and services that they provide.
Business number one KFC is similar to business number two Oxfam because they both provide products and services to customers and the public.
Business number one KFC is different to business number two Oxfam because KFC are for
M1 Contrast the ownership and purposes of two different business organisations
M2 Compare areas of growth or decline in the primary, secondary and tertiary classifications of business activities.
For M1 and M2 you have been asked to complete the tables below to be used in an information leaflet about businesses.
M1:
What is their ownership type and purpose?
Why are franchises and charities the same or different?
Business number one:
KFC
What type of ownership does this business have? Explain this type of ownership in detail.
To open and run up a business that is already open is a Franchise. A Franchise is when a franchisee asks a franchisor if they are allowed to sell their products and use their company name.
What are the positives of this type of ownership?
One of the advantages of this is that other banks would like to give money or loans to Franchise. Another positive aspect of this is that they make a profit of 91% in their reports. Also they are much known and as a result the business format is proven and is fully established.
What are the disadvantages and of this type of ownership? One disadvantage is that they are required to invest in a very large financial investment. An example could be £100,000. Another disadvantage about a Franchise is that you have to pay the franchisor a percentage of your profit. Also you will have no guarantee to work which isn’t very good.
What is the purpose of the business?
The purpose of this Franchise is that they compete with other businesses and they have good quality items and services they provide for the customers. Another purpose is that they are there for a profit. They also have easily and recognisable products and services that they provide.
Business number one KFC is similar to business number two Oxfam because they both provide products and services to customers and the public.
Business number one KFC is different to business number two Oxfam because KFC are for