3E Economics par. 3.3 and 3.4

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Par. 3.1 Question 9

1. Death risk insurance
2. Capital insurance
3. Annuity insurance

Starting your own business

- Registration at Chamber of Commerce

- Registration at Tax and Customs Administration

( VAT and profit tax )

- Rules, regulations, permits

- Market research

( Deskresearch <-> Fieldresearch )

                   Advantages                 Disadvantages       

Own business                                                                                                          

Employee                                                                                                            

Form of enterprise

Form of enterprise of the company

Choose from:

- Sole trader

- General partnership

- Limited company

- Public limited company

Assignment form of enterprise (14v)

                                                         st          gp         LC          PLC

legal entity                                                                        

private liability                                                                     

shares                                                                           

shares publically sold                                                                      

income tax                                                                            

corporation tax                                                                       

dividend tax                                                                             

separation ownership / management                                                                                  

                                                                             

Assignment form of enterprise (14v)

                                                         st          gp         LC          PLC

legal entity                                                                                           v              v                              private liability                                                    v             v                                                         

shares                                                                                                     v             v                              shares publically sold                                                                          v                   

income tax                                                             v              v                                                            corporation tax                                                                                v              v                          

dividend tax                                                                                         v              v                            

separation ownership / management                                                     v                            

                                                                             

Plumbing company Jansen en Zonen LC. Why prefer LC over General partnership?

1. Then they will have shares
2. Then they are not privately liable
3. It's cheaper
4. No income tax

Plumbing company Jansen en Zonen LC. Why prefer LC over Public limited company

1. Then they can trade shares
2. More profitable taxes
3. Then the shares will remain with relatives / acquaintances
4. Then they can go to the stock market

Hw.

For next lesson

Par. 3.3 assignments 8 and 11

Assignments from the paragraphs:

Par. 3.1 assignments 1, 2, 4, 5, 6, 7, 10

Par. 3.3 assignments 1, 3, 4, 5, 6, 7, 9, 12

Par. 3.3 assignment 8
What do a sole trader and a general partnership not have in common?

1. Private liability
2. Shares
3. Continuity
4. Legal entity

Par. 3.3 assignment 11
Who is liable to creditors?

1. Ineke 0% Johan 100%
2. Ineke 40% Johan 60%
3. Ineke 100% Johan 100%

Organisations

Sole Trader, General Partnership, Limited Company, Public Limited Company are commercial organisations: 

They aim for a profit

Non commercial organisations: people work together to achieve certain goals, but do not aim for a profit

Non commercial organisations
and their goal

Association <----------------------------> Foundation

goal                                                                                 goal

members                                                                    no members

membership fee                                          donations / subsidies

board                                                                                     board

Five ( 6 ) key tasks management

- Setting objectives

- Planning

- Organising

- Managing

- Checking

( - Evaluating )

Organisational chart

Line organisation <---------------> Line-staff organisation

clear hierarchy                                                   clear hierarchy

clear tasks and responsibility      clear tasks and responsibility

                                                                 staff department with expertise

Company influenced by

Environmental factors:

- Economic factors

- Political factors

- Social factors

- Demographic factors

- Technological factors

- Environmental factors

Company influenced by

Parties:

- Buyers                                                              - Suppliers

- Employees                                                      - Competition

- Government institutions                           - Media               

- Capital providers                            - Mutual defence organisations

Par. 3.5 assignment 3

Source 6

Companies

Environmental factor

Party

Consequences

Par. 3.5 assignment 3

Source 6  

Companies       AH

Environmental factor        Economic

Party       Competition ( Lidl ) / Employees ( Strike )

Consequences   Decide whether to continue price war and increase work load to cut costs

Par. 3.5 assignment 3

Source 2

Companies

Environmental factor

Party

Consequences

Par. 3.5 assignment 3

Source        2  

Companies       AH and Jumbo

Environmental factor        Social

Party       Animal welfare foundations / government institutions

Consequences   Decide whether or not to keep selling battery chickens

Assignment

Source 2: Environmental factor: Social

Parties: Mutual defence ( animal welfare ), Government institutions ( Advertising Code committee ), Customers

Source 6: Environmental factor: Economic

Parties: Competition ( Lidl ), Employees ( strike )

Hw.

For next lesson

Par. 3.4 assignments 5 and 6

Assignments from the paragraphs:

Par. 3.1 assignments 1, 2, 4, 5, 6, 7, 10

Par. 3.3 assignments 1, 3, 4, 5, 6, 7, 9, 12

Par. 3.4 assignments 1, 2, 3, 4, 8, 9, 10, 11, 12