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Posted: March 4th, 2021
What does the nature of business mean ? Usually, when filling out some kind of form, "nature of business" refers to the type or general category of business or commerce you are describing. For example, if you worked at McDonald's, the nature of your business is food services. "Nature of Business" means what type of business your are doing? like Wholesale, Retail or Service, Manufacturing, Marketing, etc. If you want more specific, then HBA wholesale, Car Service, Furniture manufacturing, health Drinks Marketing, etc. The nature of business, means what exactly your business is doing and what is the service/product you are offering.
For example the nature of "Walmart" as a business is "Retail" and the nature of "Microsoft" is "Software. " Internal and External Influences on businesses The external environment includes those factors over which the business has little control, such as government policy, technology, economic conditions and social attitudes. The internal environment includes these factors over which the business has some degree of control, such as products, location, resources, management and business culture. External Influences on business ·Economic ·Financial ·Markets ·Competitive siuation Technological ·Institutional ·Political ·Legal ·Social ·Geographic If you had a shop and everyone decided to go to another shop that would be an econmic disaster! If this continues for a month then the business would close, employees would be laid off, and landlords and suppliers will not be paid. Charasteristics of boom perios - Higer lever of employment -Inflation may increase - The level of spending by consumers increases as they have more confidence in the economy Characteristics of recessi on period - Unemployment levels rise - Inflation may remain stable or fall Wages are less likely to rise as employers - The level of spending usually decreases Internal influences on Business - Product - The types of good and services will affect the internal operations of a business, The product influence and the size of the business -Location -A good location is an asset and will lead to high levels of sales and profits and a bad location is a liability that adversely affects sales and products ·Location Factors - Visibility, promixity to customers, promixity to suppliers and promiximity to support devices -Management- Resource management -Business culture Failure to SME failure ·Failure to plan ·lack of information ·leaderhsip skills ·inaccurate record keeping ·new taxes ·not enough sales ·economic turndown ·staff difficulties Success to SMEs ·Entrepemtual abilities
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