(1) State and explain one advantage to travel agency Ltd of being a private limi
ID: 2602947 • Letter: #
Question
(1) State and explain one advantage to travel agency Ltd of being a private limited company. (2) State one likely aim which travel agency Ltd had when it was set up 15 years ago. (3) Explain one reason why it is important for a business to have a mission statement. (4) Describe on task which is likely to be carried out by the employees within the Finance Department at travel agency Ltd Head Office. (5) Explain the purpose of the marketing functional area in a business such as travel agency Ltd. (6) Explain the purpose of the administration functional area in a business such as travel agency Ltd
Explanation / Answer
1) Advantage of Travel Agency being a private limited company is that the company can be formed by less number of members as compared to public company. As compared to other form of entities private limited company is preferred for travel agency because it is suitable for the entrepreneurs who have the plans to offer the services online and quickly scale their business.
2) Aim of a Travel Agency Ltd: Creative and innovative objective give the business a new hope and options to increase the value of the services they provide. One likely aim of the travel agency Ltd set up 15 years ago could be to develop a niche so that they can reach the maximum target audience at a time. This could be made possible through conducting the research and introducing innovative thinking in the business.
3) Importance of Mission Statement: It determines the company's direction. Smart business owners use this statement to remind their teams why their company exists because this is what makes the company successful. The mission statement serves as a "North Star" that keeps everyone clear on the direction of the organisation.
4) Roles of Finance Department: Management of the organisation's cash flow and ensure the availability of the funds to carry out the day to day operations of the travel agency. It can also contribute to improve the accounting and management policies employed by the management. Apart from that looking at the proportion of the funds raised through debt or equity is also a task of the finance department.
5) Role of Marketing Department: Since the competition in the travel agency is increasing day by day and new players are entering the market at a high speed thus the role of the marketing department becomes very crucial in the travel agency business to reach and attract the target audience. It is the marketing department job to reach out to prospective and current investors, customers and stakeholders to create a positive image of the product. Apart from that conducting the market research is also an important task of marketing department.
6) Purpose of Administration Functional Area: It manages the office supplies stocks and placing orders. Preparing regular financial and adminstrative reports. Administration of company database.It acts as a point of contact for all the employees providing support and resolving their queries. It also assists in arranging the travels and accomodation on outdoor tours.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.