Business Start-up - Business Revision Notes
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- This involves making one off products to suit the needs of each individual customer.
- It uses highly skilled workers.
- It uses machines that can do many different jobs and are flexible.
- Products tend to be expensive.
- Example: a tailor making a bespoke suit for a customer.
- Involves making a large amount of products that are the same in one go.
- Products are made in advance, they are ready for the customer when they come looking for it.
- It uses workers that are not as highly skilled.
- Uses flexible machines capable of doing different tasks.
- Products are cheaper than those made by job production. This is of a result of economies of scale.
- Example: a baker baking a batch of cakes.
- This involves making a product continuously, sometimes through the night.
- This form of production is only suitable for products that are in continuous demand,
- The product will probably need to be replaced at intervals by the customer.
- The product is the exact same for all customers.
- Mainly uses machinery that are not adaptable and does not require skilled workers.
- Products that are mass produced are the cheapest.
- Example: toilet paper.
This is a free option- no interest is charged.
Damage to credit rating.
None- assets are not at risk.
Full control- no shares are given away.
There are high interest rates.
Damage to credit rating- bank can ask for full repayment at any time.
Free- usually interest only charged if repayments are not in time.
Damage to credit rating- will be difficult to buy goods on credit in the future.
Expensive- high int...