BUSINESS(OCT/NOV)

constructing a cash-flow forecast

injecting sufficient capital at the beginning of a business venture

offering generous credit terms to customers

developing a good working relationship with the bank.

to benefit from limited liability

to benefit from government financial support

to raise capital

to increase the divorce between ownership and control

small firms typically have little security to offer banks in exchange for loans

small firms do not have a separate legal identity

small firms are typically unprofitable

small firms face higher rates of corporation tax.

aiming to achieve a small amount of profit

aiming to achieve enough profit to keep owners happy

using retained profit to achieve a satisfactory rate of business growth

aiming to achieve the highest possible level of profit

people or groups of people who have an interest in the success of a business

people or groups of people who own shares in a business

people or groups of people who have a legal responsibility for the success of the business

the customers of a business

employees

suppliers

shareholders

customers

during an economic recession

when there is a rise in the value of a country’s exchange rate

when interest rates rise

during an economic boom

autocratic

democratic

paternalistic

laissez-faire

human relations school

scientific management

motivational needs theory

process theory

no need for induction training

gives a career structure for staff at the firm

usually quicker than external recruitment

gives a wider choice of potential applicants