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LIFE CYCLE
The life cycle of a business is a tricky thing to deal with. It starts of with the establishment, where it starts to build a client base. The next is the growth, where it starts to build gusto, with increasing cash flow and new products or services. After growth comes the most prosperous stage for a business, maturity. Maturity is where a business has a solid client base and continues to grow and expand. The last stage for a business is where it has peaked and can either maintain its current status or start to decline. This is called post maturity.

BUSINESS OWNERSHIP/STRUCTURE
There are different types ownership in the business world. Someone who has sole control of their company is called a sole trader. They alone are liable, but can also conduct without answering to anybody. Another type of business ownership where there is shared management responsibilities, and that can have from 2 to twenty owners is called a partnership.

The structure of a business is very similar to the ownership. It involves sole traders and partnerships, as well as the different types of companies; private companies, public companies and franchises. Private - A form of business ownership involving 150 private owners (private shareholders). Identifiable by business name followed by abbreviation Pty Ltd (Proprietary Limited). Public - A form of business ownership where the company can have any number of different owners (shareholders). Identifiable by business name followed by abbreviation Ltd (Limited). Franchise - A type of business where a third party has the right to use a companys name, logo, processes and practices for a fee.

ENTREPRENEURSHIP/INNOVATION
An entrepreneur is an individual who organizes and managers a business, taking on financial risk to do so. They are determined, resourceful individuals who input something new into something old to create a successful product, or in other words, an innovation. Innovation is the application of new solutions that meet new requirements, inarticulate needs, or existing market needs, and is crucial in the development of the modern world, without it we wouldnt have iPhones, HD television, or even washing machines!

NEEDS AND WANTS/SUPPLY AND DEMAND

A need - Circumstances in which something is necessary, or that require some course of action; necessity. A want - Have a desire to possess or do (something); wish for.

Needs and wants are very important in the business and marketing world. They determine the mechanics of supply and demand. Supply is the products businesses make, where demand is the products consumers want. The challenge for business is making a profit while still meeting demand.
The demands of consumers differ with price fluxuation. They will demand less at high prices and more at low prices. You can determine the level of demand (The Demand Curve) in a market for particular goods and services at particular points in time using a graph. For example Appendix #1. Supply also differs according to price. At low prices production will slow, where at high prices production will escalate. You can determine the level of supply (The Supply Curve) in a market for particular goods and services at particular points in time using a graph. For example Appendix #1.

APPENDIX #1

ECONOMICS RELATIVE SCARCITY/CIRCULAR FLOW

Economics - The social science that analyses the production, distribution and consumption of goods and services. Economic problem The ascertain that there is scarcity (relative scarcity), or that the limited resources available are insufficient to satisfy all human wants and needs. The problem then becomes how to determine what is to be produced and how the factors of production are to be allocated.

CIRCULAR FLOW The cycle of benefactors.

NOW FOR THE WHIZZ QUIZ!!!

1. So, you know how a business has four stages in its life? Well, I remember establishment, growth and maturity, but I seem to have forgotten the last one. Can you remember it?

a) Post Maturity Climax

b) Reduction

c)

2. I was thinking about opening up a business by myself. I think it would fun to be my own boss and make all the decisions, but I also need to think about the negatives. Whats probably the most important negative in being a sole trader? a) You have no help. goes to you. b) You alone are liable. c) All the money

3. Do you recall the type of business where a third party has the right to use a companys name, logo, processes and practices ?

a) Franchise Public Company

b) Private Company

c)

4. Is it true that entrepreneurs take great financial risk when they decide to open a business? a) True b) False

5. Which is innovation: a) Taking something already existing and improving/changing it.

b) Creating something entirely new.

c) Taking credit for something someone else created. 6. Needs and wants are very important in the business world to help determine supply and demand. a) True 7. At low prices, what will the level of production do? a) Production will slow. escalate. 8. 9. Consumers will demand more at prices? b) Production will b) False

a) Higher prices.

b) Lower prices.

What do you call the social science that analyses the production, distribution and consumption of goods and services.? b) Semantics c)

a) Ethnology Economics

10.

What is one thing consumers offer producers in exchange for salary and goods and services?
b) Savings c)

a) Taxation Resources

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