My Big Fat Revision

Value of Budgeting Reasons for setting budgets To gain financial support – a good business plan, incorporating clear budgets that indicate a good chance of success is vital in persuading potential bankers to invest. The quality of a budget can therefore be critical because without it a new business may never be able to get started. The more detail it contains, the more reassurance there is for financial backers looking for a carefully planned business venture. To ensure that a business does not overspent – careful control of budgets will ensure that a firm’s finances do not worsen unexpectedly, as a result of a failure to limit spending to agreed levels. To establish priorities – a budget plan is for the future, allocating a large budget can indicate the level of importance a policy or division has. This sends a clear message to stakeholders. To encourage delegation and responsibility and to motivate staff – budgets mean that junior managers can be budget hold

Types of Financial Objectives Making a business’s finances can be hard. There are many different financial objectives. It might be necessary to balance the conflicting needs of these aims to achieve a better overall performance. Businesses need to keep good levels of cash to make payments e.g wages. Some potentially profitable but risky decisions may need to be constrained. 1.        Revenue Objectives 2.        Cost Objectives 3.        Profit Objectives 4.        Cash Flow Objectives 5.        Investment Objectives (including return on investment objectives) 6.        Objectives relating to debt Benefits of setting financial objectives ·          Vary per specific objective ·          They act as a focus for decision making and effort ·          Allow for comparisons ·          Provide a yardstick so success and failure can be measured against ·          Improves efficiency – look at reasons for success/failure ·          Shareholders assess

“Aristotle's understanding of the world is more convincing than that of Plato.” Discuss. Both Aristotle and Plato have given reasons as to why they understand the world in the way they do. Although it could be argued that Plato's view is more convincing, this essay with argue that Aristotle has a more persuasive understanding of the world around us. Plato was a rationalist. He believed that reason is the ultimate way of gaining knowledge. In a world of constant change, Plato argued that it is difficult to gain knowledge in a world that is ever-changing. It is reason which gives us knowledge where there is no room for doubt, and so truths which are arrived at through reason have an enduring quality. Senses can be misleading, and because of this, it could be argued that Plato's understanding is more convincing because it does not rely on these senses. For example, the senses can give us information on what something feels like, whether it is rough or smooth, ho

Assess the role played by TNCs in the globalisation process (12 marks) Transnational companies (TNCs) are companies that have parts of their business in different parts of the world. This can be due to a country having cheap, flat land and also because wages can be low for those who are employed by the business. Having workplaces abroad has both positive and negative effects which we be explored, and will be weighed up to make a judgement on the overall role TNCs play in the globalisation process. When a TNC invests in a less economically developed country or a developing country, it does so because it is able to benefit from cheap workers. Often, places do not have a minimum wage like the United Kingdom does, meaning that they can be worked hard by the company to ensure heightened efficiency. However, because costs are low initially, it means that profit will increase which means that the company can reinvest and expand their branch. This can have negative effects on th

Why do businesses exist? •     To provide goods and services for customers •     Customers can be from the UK or abroad – individuals, other businesses or government departments. •     A business that meets the needs of the customer is more likely survive long term. •     Most business are started by a single individual or small group. •     People who have an idea and want to develop it with a business are called entrepreneurs. •     Entrepreneurs often take risks and reap the profits or losses that come with this. •     Motivation for setting up a business varies •     Some do it because they have a talent or skill they wish to use to provide goods/services •     Some try to fill a gap in the market •     All businesses are likely to  have a purpose or a mission and objectives or goals they wish to achieve. Relationship between mission and objectives •     Mission is an essential purpose or  intention. •     Usually stated in qualitative rather