Principles of Business Sba
DESCRIPTION OF THE BUSINESS
Tile House Limited is a sole proprietor business.
They specialise in the distribution of tiles.
The main objectives of the organisation are to serve their customers with the best prices and products obtainable. They would also like to dominate the market and get rid of the existing competition and like every other business a main objective is to make a profit.
JUSTIFICATION OF LOCATION
Tile House Limited is located at Tumpuna Road Arima. It is located there because it is close to the main road and supplies are easily delivered. Infrastructural services exist such as roads, electricity etc. It is also close to the consumer, large enough for the business and is close to hard wares which are retailers for the business.
SOURCES OF FIXED AND WORKING CAPITAL
Fixed Capital refers to any kind of real or physical capital that is not used up in the production of a product. These items stay in the business for permanent use. Some examples in this business type some examples would be
• Land
• Building
• Computers etc.
Working Capital refers to the amount of day to day operating liquidity available to a business. This business belongs to the tertiary sector so there exist no raw materials which change in the course of production.
SELECTION OF APPROPRIATE LABOUR
The type of labour necessary is unskilled labour. Ten employees will need to be employed for the business to run properly six of them will be required to pack the products on delivery and the cleaning of the workplace. The other four will be required to drive delivery trucks and distribute the product to the various clients.
This type of labour is necessary because skilled or professional labour will cost more and the unskilled labour is cheaper and they get the same amount of work done.
ROLE OF THE ENTREPRENEUR
The role of the entrepreneur is to co – ordinate land, labour and capital which combines to operate the business. They are the
Tile House Limited is a sole proprietor business.
They specialise in the distribution of tiles.
The main objectives of the organisation are to serve their customers with the best prices and products obtainable. They would also like to dominate the market and get rid of the existing competition and like every other business a main objective is to make a profit.
JUSTIFICATION OF LOCATION
Tile House Limited is located at Tumpuna Road Arima. It is located there because it is close to the main road and supplies are easily delivered. Infrastructural services exist such as roads, electricity etc. It is also close to the consumer, large enough for the business and is close to hard wares which are retailers for the business.
SOURCES OF FIXED AND WORKING CAPITAL
Fixed Capital refers to any kind of real or physical capital that is not used up in the production of a product. These items stay in the business for permanent use. Some examples in this business type some examples would be
• Land
• Building
• Computers etc.
Working Capital refers to the amount of day to day operating liquidity available to a business. This business belongs to the tertiary sector so there exist no raw materials which change in the course of production.
SELECTION OF APPROPRIATE LABOUR
The type of labour necessary is unskilled labour. Ten employees will need to be employed for the business to run properly six of them will be required to pack the products on delivery and the cleaning of the workplace. The other four will be required to drive delivery trucks and distribute the product to the various clients.
This type of labour is necessary because skilled or professional labour will cost more and the unskilled labour is cheaper and they get the same amount of work done.
ROLE OF THE ENTREPRENEUR
The role of the entrepreneur is to co – ordinate land, labour and capital which combines to operate the business. They are the