ESTABLISHING A BUSINESS: PRODUCTION RENTAL

SERVICE

Name: Justin Danzine

Subject: Principles of Business
School: Buccament Bay Secondary School
Candidate Number: ___________
Centre Number: 150024
Territory: St.Vincent & the Grenadines
PROFILE #1
 Table of contents

Pages

Acknowledgement ........................................................................................................................I

Introduction.................................................................................................................................II

PROFILE #1

Description of business.................................................................................................................1
Role of an entrepreneur.................................................................................................................2

Use of technology............................................................................................................................3

Potential for growth internally......................................................................................................4

PROFILE #2

Justification of location..................................................................................................................5

Selection of appropriate labour....................................................................................................6

Source of fixed & working capital................................................................................................7

Type of production........................................................................................................................8

Level of production.......................................................................................................................9

Quality control measures.............................................................................................................10

Linkages.........................................................................................................................................12

PROFILE #3

Potential for growth externally...................................................................................................13

Government regulation...............................................................................................................14

Ethical issues................................................................................................................................15
 ACKNOWLEDGEMENT

I would like to give thanks to the lord who kept me alive so I can reach this far in life and my
mom who provided me with the things I need and making me prepare for CXC. Thanks to my
teacher who help who is Mrs. Fredrick and my families who give me encouragement not to give
up.
 DESCRIPTION OF BUSINESS

Justin’s Rental service will be operated by the entrepreneur as a sole trader. Justin’s Rental
Service would be involved in the renting of motor vehicles for customers and for businesses. It
would be located in Rillan Hill and would be a medium entrepreneur business. It would also be
engaged in the selling of motor parts. The objects of Justin’s Rental Service are to carry out
business as one of the major rental and auto leasing companies in St.Vincent and to provide
quality and affordable product and service to our customers.

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 ROLE OF THE ENTREPRENEUR

Entrepreneur is a person who takes the risk of organizing labour and capital in order to produce
goods and service with hope of making a profit. One of a role of an entrepreneur is planning
which mean forming a plan for everyday or future business operations. The entrepreneur also has
function to carry out the business so it can be successful business. The functions of the
entrepreneur are:

1. Organize the factors of production;

2. To turn an idea into marketable production;
3. Set targets to be me.

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 USE OF TECHNOLOGY

Justin’s Rental Service would be using a computer to save documents and records. It will also
help to the accountant to do the financial report and send and receive E-mail from customers and
businesses. The computer can be helpful for purchasing motor vehicles over the internet for the
business. Another type of technology use is a spray can which is use for painting the vehicles
into different colour which make it more attractive for customers.

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 POTENTIAL FOR GROWTH INTERNALLY

Potential for growth is a way which is use for developing the business. The business expands its
potential growth by signing a contact with the government to provide buses for the schools.
Provide more attractive and suitable motor vehicles which would increase customers in the
business.

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PROFILE #2
 JUSTIFICATION OF LOCATION

Justin’s Rental Service would be located in Rillan Hill next to the community centre. The
reasons why the entrepreneur chooses that location are because;

1. Easy access for customers, workers, and supplier;

2. Low crime rate;
3. Convenient parking facilities.

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 SELECTION OF APPROPRIATE LABOUR

The labour force of Justin’s Rental Service is a medium size, with a number of seven (7)
employees. This business is made up of a skilled and unskilled worker. These workers have a
role to play in the business so it can carry out the task so each must do their part in the
organization. The function of the skilled worker is to monitor the vehicle which the customer
wants an also if there is any problem with the vehicle the skilled work is there to fix the problem.
The unskilled is the person who does the convincing so the customer can rent the vehicle and
also he is the one who keep record of the renter and collect the money.

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 SOURCES OF FIXED AND WORKING CAPITAL

Fixed capital refers to capital which is long-lasting and does not change its form during the
course of production. Fixed capital includes machinery, land and building and equipment.
Working capital is the money needed to fund the normal day to day operation of your business.
The business has $109,000 which was used in the business and the entrepreneur gets the money
from family members, loan from bank and personal savings.

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 TYPES OF PRODUCTION

This business is seen as tertiary production. The tertiary is also known as the service sector and
Justin’s Service Rental is seen as tertiary which is between the manufacturer and consumer. It
involves the transport, distribution and sale of service from producer to a consumer.

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 LEVEL OF PRODUCTION

The level of this production is domestic production. Domestic production is also called local
production and use local input of land, labour, and enterprise. It involves good and service
produce with local resources and help to cater for at least the basic need for the community.

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 QUALITY CONTROL MEASURES

This business would make sure that the services provided to the customer are to a high standard
and ensure that the vehicle is in a good condition and if any customers want any feedback or
information about the vehicle they will be assisted with that. If customer has any problem with
the vehicle we would take that into consideration and see how it can be solved. Justin’s Service
Rental would make sure that the motor vehicle is in a good condition.

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 LINKAGES

The linkages which exist in this venture are forward to wedding, prom and order organization
and backward linkages to the Q.K Shore and J.J Hardware shore. A benefit of linkages is that the
country can have multi-sectoral growth.

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PROFILE #3
 POTENTIAL FOR GROWTH EXTERNALLY

Potential for growth externally is a way which helps in developing the size of the organization
and its assets. The number of business partners an organization has will have a bearing on the
amount of money that is invested and by attracting investment from external source.

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 GOVERNMENT REGULATION

Justin’s Rental Service is registered with the Registrar of Companies. The workers of this
business are paid the minimum wage and national insurance and income tax are deducted from
employees. Tax is paid to the government

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 ETHICAL ISSUSES

Ethic refers to what is right and what is wrong base on the society norms and practices. In other
words concerned how such values and beliefs operate in a business. One ethical issues relating to
production is selling of underweight item to the public. Selling of underweight item to the public
can affect your business. This can cause you to lose your customers and lose of sales. Some
people may report the business which would lead to the end of the business. It can also cause the
loss of certain contact that is important to the business.

Justin’ Rental Service would not be selling underweight item to customer and also will not
overcharge customer but will give the customer their money worth.

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 Bibliography

Ramsaroop Alvin P, Ramsingh Dave and Waterman Ivan L. Principles of Business for CSEC
Examinations. Macmillan Publisher, 5th edition.

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 INTRODUCTION

This business is operated by sole trader and it knows as Justin’s Rental Service. It involved the
rent of motor vehicles and selling parts for vehicles. It would be located in Rillan Hill. Justin’s
Rental Service have about seven employee who which maybe skilled and unskilled. It is open
from Monday to Friday. Employees are paid their wages and paid at a great rate and also provide
customers with good care.

II