Level 3 Business Studies:

Unit 2 Business Resources

Task 1 (P3):
Physical Resources:
Resource
Buildings

Facilities (Amenities
and infrastructure)

Machinery (For
Production and
Distribution)

Purpose

The building that I will be using will need to be large enough to

accommodate all the equipment that is needed for the compan
Furthermore it will need to have room for the staff to be able to w
comfortable. There will also need to be space for certain infrastruc
such as toilet facilities and an area for the staff to relax and eat at b
This room would need to be large enough to fit in storage facilities s
a fridge and cupboards. Finally there will need to be a parking area f
staff and the customers so there are no extra parking fees.
In the building there will need to be room where the staff can go to
This room will have sofas and a television that can be used to help
their minds while having a break from their work. In addition there w
a kitchen area that will be populated with things such as microwav
that the staff could be bring in food that they would wish to warm up
area would also contain a fridge to keep food and drink cold and fres
a coffee machine so the staff can get a hot drink in the mornings.
company will also need to have a source of drinking water such as a
fountain that can be used at all times. This is because people work
productively when they are hydrated. Moreover will be room for toile
washrooms. The number of toilets would depend on how many peop
employed and how many customers are expected to be in the build
one time. The reason for this is that there will need to be enough
people to use. The working space they have will need to be big enou
all the employees to work comfortably.
The computers that would be used would be desktop PCs more spec
the Vibox Digital Pro. The operating system that will be used on the
computers is Windows 8.1. They have a large amount of storage at
terabytes, they also contain a 120GB SSD drive that will allow the com
to boot and open programs faster. These PCs also contain a fair amou
memory (16GB) along with a fast processor (3.9 GHz Intel i7). They wi
be connected with a 23inch high definition monitor so they will be able
seen properly to the highest resolution. There will also be a backup serv
in case the primary server breaks down and this will mean that there w
less chance of things getting lost if the computers break down. I would
use adobe software as it is the some of the highest rated developm
software and I would then use Mcafee anti-virus software as that is one
best and it does the job and at the same time it is still fairly cheap

Equipment(to
support the
studio)

Materials
including
stock

Management
of Waste

Planned
Maintenance
and
Refurbishmen
t
Emergency
Provision and
Contingency
Planning

Management
of Site Security

Management
of site
Health and
Safety

As the computer is worth roughly 800 it gives a reasonably priced machine

allows the opportunity to get spare parts just if the computers begins to fail. E
though it will cost roughly 800 for one computer it will give a good value for m
ratio as it has high performance and is built a well trusted company with gre
customer service. There will also be separate desks for each computer which
have plenty of space for the employees to keep their own things nearby. Also th
have their own chair so they will be comfortable whilst working, this would the
the employees work better if theyre comfortable and also ensure that the wi
have back problems.
As they will need supplies for things such as printers they would need to h
enough spare ink cartridges so they dont run out. This would then be use
documents of things such as customer purchases and receipts. There will ne
be spare stock for everything the company are going to use because then
wont have to worry about running out of things and if they had spares they
know when they needed to order more because the spares would be goi
Furthermore a log will be kept to ensure that the spare stock is kept hig
To control the waste from things such as computers there will be enough
inside to make sure everything goes into the bins. Then there will be bigge
outside for the larger boxes and items. These bins will be out of the way fro
public so that they will be kept away from the public so it makes the busin
cleaner.
There will be maintenance every 5 years for the inside and outside of the bu
The building would be checked over to make sure everything is still working
nothing is faulty. Also things would get upgraded if they were becoming ou
date and needed changing such as the software in the computers. There w
weekly/monthly check ups to do with making sure the software and other t
are still running properly and if they arent then they would need to get fi
Just in case something was to happen with the business that would caus
problem they would have an emergency provision of 5000-7500 set asid
things could get replaced or fixed immediately. If things were needed to
replaced fast then that is what the emergency provision would be used for. H
a contingency plan would be important to have because if there was a nat
disaster then they will follow it. Also if things such as the computers failing
this would also lead to following the contingency plan. If any of this does ha
the contingency plan will have what procedures will have to be taken.
To manage the security of the property I would have security cameras all a
the place to monitor all the important parts of the building and also all the d
The doors will also be locked by a key and then also a code lock so the doo
extra secured. The building will also use the ATN security because that is a
good security program and people are aware if its there so they are less lik
try and break in.
To ensure that there wont be any problems to do with health and safety w
make sure that everything that could cause problems such as wires and ele
equipment are all safely out of sight and not able to cause problems like pe
tripping over them. We would do this by putting all wires into the ceiling so
are definitely out of the way. We would also need to have our fire exits and

Insurance
Issues

extinguishers clearly shown so in case they are needed to be used people

know where they are and can get to them quickly.
It is very important for the company to have the correct insurance because
dont have it then they could end up having to pay out a lot of money. They
need to have Employers insurance because if the employees were to get in
or ill due to something at the business then they will be able to sue them if
dont have the correct insurance and that could end up costing them a lo
money. Public liability insurance is needed because it will cover the cost
compensation and any legal cost if any customers were to have an injury o
of the business activity.

Technical Resources:
Resource

Purpose

Copyrights

Copyright is a form of legal protection given to designers and manufacturers. The

product must qualify for protection and is tested against a specific. The main goals
of copyright are to encourage the development of culture, science and innovation,
while providing a financial benefit to copyright holders for their works, and to
facilitate access to knowledge and entertainment for the public. Copyright provides
a framework for relationships between the different players in the content
industries, as well as for relationships between rights holders and the consumers of
content. Copyright is a form of Intellectual Property, along with trademarks and
patents in all countries, and other creations (such as trade secrets, sui generis
database rights, rights of publicity and the like) that may vary from country to
country.
A business licence is a legal document that grants you the right to operate a
business in your city. Depending on your business, there are other licenses that
may also be required. For example if you are the owner of a shop or stall then you
will require a trading licence in order to sell legally. Failure to comply with the
licensing and permit requirements for the type of business you plan to start in your
jurisdictions could result in additional fees, penalty payments or operational
restrictions until conditions specified by the regulating authority have been met.
A patent is a temporary government-granted monopoly right on something made
by an inventor. The historical purpose of the patent system was to encourage the
development of new inventions, and in particular to encourage the disclosure of
those new inventions. The purpose of the patent system is to encourage the
development of new inventions, and in particular to encourage the disclosure of
those new inventions. Inventors are often hesitant to reveal the details of their
invention, for fear that someone else might copy it. This leads to keeping
inventions secret, which slows innovation. Therefore patents are used to protect
these inventions from being stolen.

Licences

Patents

Task 2 (P4):
Personal finance is money which you have saved and have available to use in a
personal bank account and can then invest it in the business. This can be used

for starting a business or buying stock, computers and other internal resources.
This can be used as a long term investment because when you have money
available you can then invest it into other things which is required for the
business to succeed meaning that you can gain more money long term. Benefits
of using your own savings is you do not have to take out a loan and then be in
debt. The disadvantages of using savings is with this is there is only a certain
amount of money you have and can use to invest and this depends on the
amount you have saved and can afford to invest. Furthermore you could also
lose this money if the business doesn't go to plan.

Bank Overdrafts are where the bank will allow you to use more money than you
have available in your account. The benefit of this for a new business is you can
still pay out for things even though you dont have enough money within the
account to pay for it. However this is a type of short term finance. The down
sides to this is the interest with the overdraft will vary and you will pay interest
on the amount which you have taken. Moreover an un-agreed overdraft will have
higher interest rates and agreed overdrafts will have lower rates. Overdrafts are
flexible as they are available when it is needed and quick to arrange as long as
you have good cash flow to back it. On the other hand the bank is able to recall
the whole overdraft at any time, this means that you could end up in a lot of debt
very fast. This can be caused by not keeping up the payments, or if you have
broken their terms and conditions which you signed to. Finally the overdrafts
might also be secured against the business assets.
Loans are a credit which you will usually get in cash and will have to repay the
money over the length of time which you have agreed to the money provider.
You can gain loans from Banks, loan businesses and friends or family. When you
take out the loan there is usually be interest added onto the loan. This can vary
on different factors like the base rate, how long you have taken the loan out for
and how much you have borrowed. The benefits of having a loan is that you
dont have to pay the money on demand as you have the money available for
the whole term, this can be normally between 3 and 10 years. When you take out
a loan it can be tied into equipment or other assets which you are using the loan
for. The disadvantage of loans are they arent really flexible as you will have to
still pay charges if you pay the loan back early. If you dont get paid by
customers or if you dont have enough money you will struggle to meet the
monthly payments. The variable rate loans can change when you are repaying
the loan so if it does change then it can make it harder to pay back and plan your
finances.
A Commercial Mortgage is similar to having a mortgage except it is for the
business not for living. The building which you chose for the premises will have
to be assessed individually as the price will vary for different buildings as it goes
according to risk. The commercial mortgage is usually gained once you have
finished with the business loan. Commercial Mortgages usually last for 3 to25
years. You can also get a shorter term finance which is known as a bridging loan

or property development loan. When you take out the loan the lender will use the
property as security for the loan which is normally 70% of the Value and ask for a
cash deposit. The benefits of a commercial mortgage is that you still own the
business as you dont have to give share away. With a commercial mortgage the
interest can be tax deductible. This then can reduce the businesss tax
overheads. Disadvantage is the bank who has given you the mortgage would
then own the building so if you cant keep up with the payments then they can
take it from you. If you have a variable interest rate then the interest will
fluctuate between 1 and 6 percent above the Bank of England Rate. You will have
to have a good sized deposit.

An Angel investor is someone who has money available and the will have
business or professional experience to invest in you and help the growth of the
new business. They work by investing for example 50,000 and they would have
a share of the business like 20% in return for the finance. By doing this you will
gain the money needed and their knowledge of owning a business and their
contacts as well. The benefits of an angel investor is they can make decisions
fairly quickly. You get access to their personal contacts within the industry. They
have a lot of business experience so they can give you some of their knowledge
unlike when you take out a loan or grant. The disadvantages of having an angel
investor are they will have a share within the business. You will have to gain trust
you would pitch your business to the investor to prove that the business is
investable but more important you. It might take some time to find an investor.
Hire purchase is a type of borrowing. But unlike borrowing you wont own the
goods until you have paid in full. You are hiring the goods while paying an agreed
amount monthly. Since you pay monthly instalment you cant sell the goods you
are hire purchasing unless you get permission else you will being committing a
criminal offence. If you cant keep up with the payments and fall behind then the
lender will be able to repose the goods. The benefits of hire purchase is if you
cant afford to pay for the goods in one go then you can pay ever month when
you have the money. Also if you want to buy an expensive item you can pay for
them over time so it will make it easier to pay for them. You have use of the
goods while you are still paying for the goods. The disadvantage of it is even
though you have use of the goods you still dont own it until you have paid in full.
You will end up paying more for the items because there will be interest added. If
you are paying for something worth 500 and 20% will be added so you be
paying 100 on top of the original cost of the item. It can take a long time to pay
the money.

You will have a contract and between the company which is the lessor and you
the lessee for an item like a car. You will then pay monthly instalments for using
the car. You will have exclusive possession of the car for the time you are paying
for which is the period of time you agreed. Once the agreed time has ended you
will give the car back to the company as you dont own it. You would lease
instead of buying or getting a loan because you may not want to buy the car and
own it. The benefits of leasing is its easier to get a lease than a bank loan. You
will have better security on your finance as the car is still owned by the company.
So you will have a better chance of being accepted than have other forms of
finance. The disadvantages of leasing is you will never own the car as it is
property of the company you are leasing from. You will be responsible for the
maintenance and the repair of the car even though you dont own it.
Factoring is when a business sells their own debts to a company who will get the
money for them immediately. If a customers owes you money you can go to a
factoring company with the invoices of what you are owed and they will chase up
the money and keep a certain amount of the money got back as a charge. An
alternative option is the factoring company can take the invoices off you and if
you are owed 50,000 the factory company can pay you 40,000 and keep the
10,000 to cover their costs. The benefits of this service is the debt is taken off
your hands. You will be able to get most of the money owed to you back so you
wont lose a lot of money. Disadvantage is the factoring company will take a
certain amount of money for the service.
It is a way of raising finance for the company. A small business can move from
being a sole trader or partnership and issue shares, but the shares arent
available for the public to buy just the business contacts, friends and family.
Limited companies can become a public company by being floated on the stock
market. When they become a public company the can sell shares and you can
buy shares of the business. Advantages of this is the business can gain extra
money from selling shares. Disadvantage of selling shares is someone can buy a
large amount and then they can take over the business.

Task 3 (P1, P2):

Activity 1 (P1):
Job Analysis:
First off you must look into what companies or businesses have job vacancies in
the industry you want to go into. You must then look at the jobs available to see
which will suit you the most. This will include things like: what the entry
requirements are, what the job consists of or what will be expected of the
employee.

Job Description:
A job description is a statement that describes all aspects of the job in full detail.
These usually include: the title of the job, the department you will be working in

and location, broad terms, responsible to whom, responsibilities of what you will
be doing, scope of post what your job will include, education and qualifications,
name of compiler and approver, date of issue when the job document was
issued.

Person Specification:
This is a statement that describes the exact kind of person wanted for the job in
full detail. These usually include: he qualifications required for the job, what
types of training required, the experience, personal attributes and qualities.

Attracting and Managing Applications and Selecting Candidates:

This is the process that is used to recruit employees for a certain job and then
managing all of the applications sent in. The recruiting process is done in many
ways such as: posting job adverts on websites, in newspapers, on notice boards
and at the job centre. Then each application needs to be responded to, so they
will analyse the CV and a potential candidates will be sent a date for an
interview.

The Interview:
Once each potential candidate has been chosen they will all be sent a date for an
interview. At the interview the employer will look into the CV of the applicant
further, ask the applicant questions and get a general overview of the person.

Getting the Job:

The interviewer will either phone you to say you have got the job or send you a
letter. If you dont get the job they will either not get in contact with you or send
you a letter of rejection. Once you have been contacted telling you have been
accepted you will be asked to come to the business for an induction and training
which can be 2 days. Once this has been completed then you are left to get on
with the job that you have achieved.

Activity 2 (P2):
Employability
Suitable
Qualifi cation

Experience in
a suitable

Describe where the employability, personal and communication

skills and attributes are important for the performance of that role
and make a supported judgement as to how far you fulfi l the skill.
In order to become a person of interest for employment in my company
applicant must have a significant qualifications in either web design or
computer science. Such as a degree or higher. They must also have a
minimum of a C in English and a B in math a GCSE or equivalent.
Furthermore knowledge of both the HTML and the Python coding languages
is required.
In order to gain a senior designer or department managers place the
applicant must have gained a significant amount of experience in web

role
Knowledge of
products and
services
Knowledge of
industry

Background

design and team management. The reason for this is to ensure that the
departments are managed correctly and the business runs smoothly.
In order to become a person of interest for employment in my company
applicant must have significant knowledge in the products and service of the
company. This is so that each employee knows what is expected of them,
they know what the companys aim is and so that they know what their
responsibilities are.
In order to become a person of interest for employment in my company
applicant must have significant knowledge of the industry. This is so that
each employee knows what is expected of the company, what sort of people
the company will do work for and finally so that they can stick to all laws and
legislations of the industry.
My company will not be interested in employing anyone with a criminal
record or background. This is to ensure that the rest of the employees feel
safe and comfortable in the working environment and so that the customers
of the company are comfortable with talking to any member of our staff.

Task 4 (P5):
A profit and loss sheet is used as it details the businesses transactions,
subtracting the total outgoings from the total income to give you a reading of
how much, if any, profit you have made. It is also used for showing the financial
health of the business over a period of time which can be a month, quarter or
year. It represents the finances for a particular part of time. Sales/turnover is the
value of the goods which have been provided to the customers of the refectory
during a period of time which is a year. The refectory sales for the year are
262,000. Closing stock is the inventory which the business will have at the end
of a reporting period, for example the end of every month. For the refectory it
can include food and drinks. The closing stock is 2450 Purchases is what the
refectory will buy in which would be equipment, bottled drinks, ingredients to
make the food, table and chairs, counters, fridges and more. The refectory
purchases are 27,000. The gross profit is the revenue of the refectory with the
cost of goods sold taken of. It shows the refectorys profit before having
overheads, taxes and interest taken off. The refectory has a gross profit of
237,450 The overheads are used to display the other expenses which occur for
the business. The expenses which occur for the refectory are wages which cost
173,000. Business rates which is a tax on business premises this costs 47,000.
Depreciation is when a product decreases in value. An example is a car. The

refectorys depreciation is 11,000. Other expenses which the refectory have

cost 2,000. Interest is charged for loans which cost 1,000. The total cost for
overheads is 234,000.
Net profit is the profit left from all of the expenses it shows whether the refectory
will have made or lost money over the year. The refectorys net profit is 3,450.
Taxation (20% of profit). This is the money which is paid to the government. It is
used by the government to cover their expenditure. For the refectory it is 690.
Profit is the money which the refectory has made within the year and will retain
it. The profit which they have made is 2,760. Balance sheet is used to show the
financial position of the business on a specified date which is usually the last day
of an accounting period. The sheet includes what assets the business owns, how
it paid for them, what the business owes which are the liabilities and whats left
after the liabilities.
Fixed Assets are objects which the refectory own and it has
a value. They arent usually sold or consumed while the business is running. For
the refectory this includes the premises which cost 37,000, Machinery at
19,000 and Equipment at 9,000. Overall the fixed assets are worth 65,000.
The fixed assets are there to help the business run and complete the operations
that are required. The current assets show the value of the refectorys assets.
The assets are things like stock and receivables which will flow in and out of the
business during its operations. For example the refectory will spend money to
make into food to sell and then they will
Connor Winter Unit 2 Assignment Number
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make the money back from selling it with profit. The stock which the refectory
has is 2,450 and the debtors are 3,500, overall the current assets are worth
5,950. Current liabilities are obligations which the refectory will have to pay in
the course of the year which is creditors and a bank overdraft. The current
liabilities for the refectory is for creditors 700 and Bank Overdraft is 200. Net
Current Assets will indicate the amount of capital the refectory is generating or
being used in the days activities. If the figure is negative then they may find is
hard to be able to finance their day to day operations. The total current net asset
for the rectory is 5,050. Long term liabilities are debts the refectory has to pay
back. But they dont have to be paid back within 12 months but in a year or
more. The refectory has a loan. Net assets are the value of the refectorys assets
with the liabilities deducted. For the refectory net assets are 61,460. The net
assets within a sole proprietorship can be known as owners equity while within a
corporation it is also known as stakeholders equity. The higher the net assets are
worth the higher the value of the business is. Financed by is money which has
been financed by someone. For the refectory they had been financed by owner
investment of 58,700 and retained profit of 2,760.