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(Download pdf) Oxford Ib Business Management Course Companion Loykie Lomine full chapter pdf docx
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O X F O R D I B D I P L O M A P R O G R A M M E
2 0 2 2 E D I T I O N
B U S IN E S S
M A N A GE M E N T
C O U R S E C O M PA N I O N
Loykie Lominé
Rober t A. Pierce
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What is Kerboodle?
assessment materials
3
3.9 Budgets (HL only)
Practice question
reservation service. EEB employees are highly motivated and take great
By the end of this chap ter, you should be able to: Key terms
pride in their work. EEB has received recognition for its high-quality
Budget
Explain the dierence bet ween cost and prot centres
software designer.
Explain the impor tance of budgets and variances in decision-making Budget holder
stnuocca dna ecnaniF 3
stnuocca dna ecnaniF 3
of a budget
Option A Option B expenditure over a specied future time period. Budgets can be prepared
Cost centre
a section of a business
Further payments payable: the organization. They enable the efcient allocation of resources within
Prot centre
cost: $15,000 in year 2
is known as the budget holder . The budget holder is responsible for
larva
Training cost On-the-job: free Intensive: $12,000 in year 1
ensuring that the specied budget allocations are being met. Commonly a section of a business where
Maintenance cost Free $1,000 per year used budgets are sales revenue budgets and cost budgets. both costs and revenues are
different parts of a business are divided into cost centres or prot centres
shown below. Each option
Cost centres
using Book-Fast have reported problems with the software, including
Option A Option B
security issues. However, Maia has chosen Option B, which will provide This is a part or section of a business where costs are incurred and recorded.
more up-to-date, sophisticated and secure reservation system software. It Cost centres can help managers to collect and use cost data effectively.
Year 1 10,000 14,000
will also give EEB a competitive advantage and an ability to handle a large Examples of costs collected and recorded in these sections include
global volume of hotel reservations. electricity, wages, advertising, and insurance, among other costs. Businesses
d) For both Option A and Option B, calculate the net present value
these products could be cost centres because costs are incurred in their
geographic areas that they are located in could be cost centres. cost centre
f) Examine Maia’s choice of Option B. [ 10 marks
218 219
Need help?
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2 0 2 2 E D I T I O N
BUSIN E S S
M A N AGE M E N T
C O U R S E C O M PA N I O N
Loykie Lominé
Rober t A. Pierce
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Acknowledgements
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a la memoria de Gisela
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Contents
Introduction to concepts v
toolkit vii
management 313
1.2 Types of business entities 14
management 80
Unit 6: Assessment
Index 407
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INTRODUCTION
This book is a companion for students of Business Some of the questions and activities in the book
Management in the International Baccalaureate will challenge you and you will want to learn
Diploma Programme (IB DP). It rigorously follows more. This book can act as a foundational resource
the DP Business Management Guide published by the if you plan to study business management at
IB, regarding not only the syllabus (the curriculum university, or if you want to set up your own
content) and the assessment strategy, but also the business. It also gives you the skills necessary
IB educational philosophy (the IB Learner Prole) to work in an organization and understand its
and pedagogy (the IB approaches to teaching and structure, functions and operations. Even if you
learning, especially regarding the importance of do not plan to study business management at
concepts and contexts). university or set up your own business, this book
business management as it is today, and as it will This book will help you as you study IB DP
develop tomorrow. Regarding contexts, you will Business Management, at standard level or at
explore local, national and international examples higher level, and it will also help you become an
and case studies of business organizations, and how even better IB learner!
The authors
The “In cooperation with IB” logo signies the content in this textbook has been reviewed by the IB
to ensure it fully aligns with current IB curriculum and offers high quality guidance and support for
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INTRODUCTION TO CONCEPTS
Concepts can be dened as big ideas that reach beyond the boundaries
below gives you a solid starting point. You are not expected to memorize
the denitions; what matters is that you understand these four key
Change Change refers to modication or transformation from one form, state or value to another, over time or across places.
In Business Management, change is usually the result of internal or external inuences. For example, externally,
new competitors and new trends in consumer behaviour may lead an organization to adapt its objectives and opera-
tions; internally, the arrival of a new CEO may lead to a shift in the priorities of the organization’s strategic plan.
Creativity Creativity refers to the process of generating new ideas and considering existing ideas from new perspectives. It
includes the ability to recognize the value of ideas when developing innovative responses to problems. In Busi-
ness Management, creativity may lead to the incremental or radical improvement of a business idea, of a product
or of a process, in order to be more successful or more competitive. For many organizations, a key challenge is
bringing innovation and managing the process of improvement in a sustainable way that does not create conict.
Ethics Ethics refer to the moral principles and values that form the basis of how a person or an organization conducts their
activities. In Business Management, it is impor tant to realize that every decision may have moral implications,
impacting on internal and external stakeholders and the natural environment. Ethics is present throughout the orga-
nization, from marketing communication to operations, and from recruitment of new sta to accounting practices.
Sustainability Sustainability refers to the ability of the present generation to meet its needs without compromising the ability of
future generations to meet their own needs. It can be enhanced by conserving resources, nding more ecient
ways to produce or discovering new resources. In Business Management, decisions should consider the triple
bottom line of people, planet and prot, and their resulting impact, taking into account not only nancial aspects,
There are several reasons why it is important to learn about the four
key concepts.
You could otherwise have the impression that the elements constituting
the course are disconnected, but they are not: the concepts enable us to
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2. The four key concepts will help you make connections to other
As IB learners we strive to be:
KNOWLEDGE ABLE
understanding, exploring
can help you learn across disciplines, which is a key aspect of the
key concepts. The way you connect your chosen concept and your
C oncep t
The four key concepts are not “extra topics” that would be added to
CHANGE them; they are present throughout. In many cases, you will see boxes
However, these boxes are not the only instances where you can link
competitors) and changes in their
internal environment (such as the concepts and the contents of the syllabus. As you progress through
restructuring), organizations may the book, and you learn more about Business Management, you should
and strategies.
Likewise, as you discover new examples and case studies, and as you
Do some research to nd learn about business issues in their context, you should keep identifying
examples of such changes in links to the key concepts. This will help you to understand the
objectives or strategies.
concepts… and the contents! Ultimately, the three aspects are linked
Concepts
(change, creativity,
ethics, sustainability)
Content
Contexts
(Business Management:
(Case studies,
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MANAGEMENT TOOLKIT
to help in the analysis and evaluation of the course. These tools can be
• Planning tools review the action steps that businesses need to take
the course content, concepts and contexts. Each unit in this book contains
toolkit boxes that provide suggestions about how the BM tools are
BCG matrix
The BCG matrix is a planning and decision-making tool that uses graphical
How can the knowledge of this tool help businesses to improve their nancial
decision-making?
The tables on the next two pages show the BM tools used in the course as
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Business
Brief denition
management tools
Anso matrix The Anso matrix is a tool that provides a business with a framework to analyse and plan its
(pages 48, 297) growth strategies. The four growth strategies it includes are: market penetration, market
Boston Consulting Group The BCG matrix is a tool that evaluates an organization’s por tfolio potential based on relative
(BCG) matrix market share and industry growth rate factors. It helps in long-term strategic planning and
(pages 215, 276–79) decision-making with regard to what the organization should invest in, discontinue or develop
in the future. It is a four-square matrix that uses graphical representations to plot the
organization’s oerings.
Business plan A business plan is a road map that provides a detailed account of a business’s goals and how it
(pages 10, 301, 324) plans to achieve those goals. It is a guide that lays out a business’s functions from nance, human
resources and marketing to operations and other elements essential to its success. It can be used
Circular business models Circular business models signify the diverse ways in which goods and services are produced and
(pages 42, 275, 318, 331, 391) consumed. These models explore how organizations create, oer and deliver value to their stake-
holders while reducing environmental pressure and social costs resulting from economic activity.
• Sharing models
Decision trees A decision tree is a graphical tool that uses a branching model to demonstrate every possible
(pages 68, 342) outcome of an organization’s decision. These tree-like branches represent various choices facing
the organization, including costs, results, probabilities or risks. Businesses use decision trees to
Descriptive statistics Descriptive statistics are quantitative means that are used to summarize a given set of data. It is a
(pages 91, 98, 121, 126, process of using and analysing given statistical data. Descriptive statistics help to present a large
168, 369) amount of quantitative data in a simplied or manageable form. They are broken down into mea-
sures of central tendency and measures of variability. In this BM course the following measures
will be used:
• Mode • Infographics
STEEPLE analysis STEEPLE stands for Social, Technological, Economic, Environmental, Political, Legal and Ethical.
(pages 59–62) STEEPLE analysis is a useful tool for a business that aims to study its external environment. It pro-
vides a detailed overview of or insight into the various external factors inuencing an organization.
S WOT analysis SWOT stands for Strengths, Weaknesses, Oppor tunities and Threats. Strengths and weaknesses
(pages 45–48, 83, 192, 303) are internal aspects inuencing an organization, while oppor tunities and threats are external
factors aecting an organization. In conducting a SWOT analysis, a business must examine all of
these elements as they all have the potential to impact its success or failure.
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Business
Brief denition
management tools
Contribution Contribution in this context refers to a set of tools that are used to aid decision-making in a
(pages 168, 349–50) business after analysing and evaluating its given revenue and cost situations. Businesses need
to pay par ticular attention to the decisions they make due to their direct impact on their nancial
• Contribution costing
• Absorption costing
Critical path analysis Critical path analysis is a tool that helps a business to schedule and manage complex and
(page 367) time-sensitive projects. It is used to map out all impor tant tasks that are essential to complete
a project. It helps to set realistic deadlines for a project and monitor the achievement of project
goals, providing remedial action where required. In this BM course the following will be required:
• Completion and analyses of a critical path diagram (drawing of the diagram is not expected)
Force eld analysis Force eld analysis is a tool used by businesses to analyse the forces for and against change to
(page 347) inform decision-making. It is useful when organizations are planning and implementing pro-
grammes on change management. The force eld analysis diagram provides a comprehensive
overview by illustrating the driving and restraining forces inuencing a given situation.
Gantt char t A Gantt char t is a graphical tool that helps to plan and schedule project tasks. It shows a given
(page 372) project schedule, including how the tasks or activities are performed over a set period of time. It
is useful in breaking down complex projects into a simpler display that is easy to understand. In
addition, where large teams of stakeholders are involved, it helps to keep tasks on track .
Hofstede’s cultural Hofstede’s cultural dimensions is a tool aimed at understanding the cultural similarities and
dimensions dierences across countries and determining the various ways that business can be conducted in
(pages 109, 311) these cultures. It is a framework that compares the dierent national cultures and their dimen-
sions as well as examining their impact on a given business setting. Countries can be classied
Por ter ’s generic strategies Por ter ’s generic strategies explore how a business can obtain a competitive advantage over
(page 246) other similar businesses across its specied market scope. These strategies help a business to
determine its direction as well as how to beat its competition. The generic strategies include: cost
leadership (producing at a low cost); dierentiation (oering uniquely dierent and value-added
quality products); and focus (selling its product to specialized market segments). Focus is fur ther
Simple linear regression Simple linear regression includes a set of tools that describe or predict the relationship between
(pages 253, 254, 351) two variables. They estimate how changes in an independent variable (the variable used to
predict the value) may aect changes in the dependent variable (the variable being predicted).
• Scatter diagrams
• Line of best t
• Correlation/extrapolation
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INTRODUCTION TO THEORY OF
KNOWLEDGE (TOK)
about critical thinking and inquiry into the process of knowing. It is not
understanding of TOK.
1. To what extent does how knowledge is constructed, each chapter in this book suggests
knowing help us in relevant TOK knowledge questions. They are meant to illustrate TOK
reliable?
How is TOK assessed?
3. Is it ethical to knowingly
TOK is assessed in two ways:
overpredict?
• Through an essay (on one of the six prescribed titles issued by the
theIB).
For the exhibition, students explore how TOK manifests in the world
around us. You will select three specic objects (or images of objects)
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Core theme: The core theme encourages This core theme can be addressed by discussing what counts (or not)
“K nowledge and the students to reect on themselves as knowledge in Business Management; where (and how) we can gain
knower ” as “knowers”, on what shapes knowledge in this subject; and who created this knowledge, for what
their views and perspectives, purposes, with which authority. Notions of values and communities
where their values come from, and are impor tant, with regard to both the subject knowledge and
how they make sense of the world the students themselves, within their own sociocultural and
Optional themes Those themes all have a signicant The theme “knowledge and technology” is par ticularly relevant to
impact on the world today and Business Management. For example, Chapter 5.9 considers how
play a key role in shaping people’s advanced computer technologies (enabling data mining and data
perspectives and identities. You will analytics) and innovations (such as ar ticial intelligence) may impact
explore two from a list of ve: decision-making processes in business organizations, and raise ethical
societies
the overall coherence of the model. This shows that this knowledge about
the marketing mix and about big data was constructed through the English
Areas of knowledge The ve areas of knowledge (AOK) As Business Management is one of the human sciences, it is
are specic branches of knowledge, interesting to explore how research methods such as questionnaires
with their own nature and methods are trusted as reliable ways to gain knowledge (eg about a market, a
for producing knowledge: product or a business), given the challenges around neutral language,
could also be wor th examining the purpose and context within which
• Natural sciences
K nowledge This tool helps to explore the Ethics is particularly relevant as it is one of the four key concepts
framework themes and the AOK . It is underpinning the DP Business Management curriculum. The rst aim
composed of four elements: of the course is “to develop ... condent, creative and compassionate
to big data and consumer proling. From a TOK viewpoint, the focus should
• Ethics
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INTRODUCTION TO INQUIRY
INQUIRERS
forms, especially:
throughout life.
Inquiry and research go together. This book covers the syllabus of the
IB DP Business Management, but for your studies you will also need to
campaigns on topics that interest you. This will also help you to link
the contents of the course to the world around you, and appreciate the
Your internal assessment (IA) is a research project. The task has specic
theoretical learning.
These open questions can help you to link the content of this textbook,
contexts (of the examples that you will nd through your research).
you create links. Answering them will also help you to develop your
xii
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The table below gives you some examples of such inquiry questions.
stakeholders?
Introduction to business
sustainable?
marketing strategies?
Marketing
Operations management
(Chapter4.5) will help you appreciate the applied nature of our subject.
Beyond the Business Management subject itself, this can also help you
otherstudents.
xiii
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ssenisub ot noitcudortnI 1
tnemeganam
INTRODUCTION
1
TO BUSINE SS
MAN AGEMENT
➔ Outline the nature of business acti vity in each sector and the impact
● Creating a product
● Providing a service
Some businesses focus on one activity. For example, a business may grow
activities. For example, a farm that grows olives may convert the olives
into olive oil for sale under its own label. Sometimes a business will cluster
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All of these businesses input resources and process them to generate the
ssenisub ot noitcudortnI 1
desired output. This is how the business adds value (sometimes referred to
tnemeganam
must have human, physical, and nancial resources. Thus, many charities,
Needs and wants are different. To survive, we all need the basics – food and
water, clothing and shelter – and many businesses provide for our basic
charities, clubs and so on all provide services or products that people need
human
goods
physical
production
nancial
services
enterprise
● Human – the right quality and quantity of people required to make the
ones, still require human input – even if it is only one person. Others
and land space required to make the product or service. Even internet
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ssenisub ot noitcudortnI 1
business. It is the business idea and the determination to turn that
tnemeganam
idea into a functioning and, ideally, thriving business. Enterprise is
land and the machinery simply cost a great deal due to the scale of the
intensive operations may involve fairly low-skilled workers but can also
● Services – these are intangible and the buyer does not physically
take them home. They include, for example, a karate class, a medical
Business functions
along the same lines, by function – what is to be done. There are four key
functions:
● Marketing
The only difference between small businesses and large ones is that the
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1
ssenisub ot noitcudortnI 1
tnemeganam
HR
HR
Finance
Business
Marketing and
organization
accounts
Finance
Business
Marketing and
organization
accounts
Operations
Operations
A small business
A large business
function and in doing so help the business to achieve its overall objectives.
Function Role
service and that they are suitably rewarded for doing so. To accomplish
these goals, the HR depar tment must recruit people, train them, at
Finance and Ensuring that appropriate funds are made available to make the
accounts product or service. To accomplish this goal, the nance and accounts
Marketing Ensuring that the business oers a product or service that is desired by
product or service.
Operations Ensuring that appropriate processes are used in order to make the
management or product or service, and that the product or service is of the desired quality.
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ssenisub ot noitcudortnI 1
department determines that a product needs to be made differently
tnemeganam
as a result of changes in consumer taste, the operations management
degree. That redesign may require nancial resources, which the nance
may change. For example, a business may plan to diversify (produce other
even control of the market might become a priority, which could require
the four functions are. Is the business producing a desired good or service
for the market it is targeting? Are the right people producing the good or
non-nancially)?
Small businesses often have an advantage in that they can respond quickly
generally have greater resources, wider reach, and more name recognition.
Thomas Cook
services. A poorly conceived merger in 2007 with MyTravel added to Thomas Cook’s problems.
Though the company tried a number of tactical moves to retain its viability, none of them seemed
to work. According to The Guardian, on the eve of Thomas Cook’s collapse, only one in seven Brits
used traditional travel agency services. Finally, in 2019, the venerable company that had created the
phenomenon of mass tourism began laying off 22,000 employees, liquidating its assets, and leaving
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Key terms
tnemeganam
quaternary sectors
Primary sector
as of minerals or oil) or
quarrying)
because of the scarce nature of many resources in the primary
Secondary sector
economy)
secondary sector production occurred in what are referred to today
Ser vices Ter tiary All services are provided in the ter tiary sector, sometimes using
countries, the ter tiary sector has grown in impor tance in developed
impor tant.
Quaternary This sector, a subgroup of the ter tiary sector, provides services
information technology
steps through the different sectors that have to occur in order to turn raw
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Student workpoint
make plastic and glass, etc) are extracted (primary sector) and processed
tnemeganam
1.1
into the materials (secondary sector) that manufacturers turn into car parts
(secondary sector). The car parts are then used on an assembly line to
Be a thinker
make cars (secondary sector). The cars are shipped (tertiary sector) to car
chain. Consider:
buy cars, they read magazines or online reports about car features and
● A skateboard
quaternary sector.
● A smartphone
Sectoral change
The size of each sector of the economy may change because, just as
Economists usually measure the size of each sector in terms of the number
in the production,
of these products?
The more advanced sectors require more complex social contexts for
businesses to thrive. Thus, whereas raw material extraction is often Less developed
possible with relatively few skilled workers and large numbers of low- (low income) economies
primary
secondary
people and businesses that want and have the ability to make use of
ter tiary
quaternary
economies develop.
Developing
However, developments are not linear. Technological innovation in (middle income) economies
one area (for example computerized word processors) and its related
primary
secondary
ter tiary
quaternary
Developed
do well, even in industries that are perceived as “in decline”. In general,
both Canada and Australia, however, two primary sector industries have
primary
secondary
ter tiary
quaternary
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sector businesses may require specialist skills that may be in short supply.
require fewer physical resources (they will not be needed as much in the
developedeconomies.
up a business
Rewards Working for someone else means that you do not get to keep
capitalism, one central element is that those who put their capital
salaries that are typically less than the return on capital is to the
Independence Working for yourself means that you are your own boss and not
means that you can set and change the policies and procedures
were made redundant or who could not nd work . The necessity of
Challenge Some people just want to see whether they can “make it”
owner then has to learn new skills as his or her role changes to
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Interest Many interesting businesses are set up by people with a passion
for something who want to just keep doing what they enjoy doing.
C oncep t
tnemeganam
The business producing Hawaiian Tropic suntan lotion was star ted
CRE ATIVITY
clothing stores, rare books stores, etc – allow their owners to work Creativity can be dened as the
in an area for which they have a passion. process of generating new ideas,
small, stumble into oppor tunities that they were not looking for.
working at 3M.
model with limited resources,
Sharing an idea If you really believe in something, you may want to sell the idea to to get the initial nance for their
others. Yoga studios, for example, are typically owned by people star t-up costs, or even to invent the
● Planning
The business idea refers to the fundamental activity that the business
idea can be market-driven – that is, determined by the needs of the market
is worth purchasing.
the entrepreneur should carefully plan the business in order to reduce the
4 Establishing
legal
requirements
be based? What will the entrepreneur call the business? What will
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will distinguish itself from others in the market. Rarely is a gap in the
market obvious. If that were the case, it would be easy to start a successful
business. However, new businesses have very high failure rates. While
rates in the United States, for example, are between 50 and 80% in the
rst four years of operation; 25% fail in the rst year alone. In Europe,
Thus, once the basic business idea is determined, the business must
will target, and the entrepreneur must answer some basic questions:
How will they conduct market research? Who will be the target
market? Can the new business test its concept? What will be its “unique
the market?
Let’s consider the example of the entrepreneur who wants to enter the
grocery business. The idea is very attractive. After all, food is one of the
of the grocery market (high volume, low cost, for example) may be
saturated. Market research might reveal that a small niche market (such
the market. Thus, researching the market has narrowed and rened
idea: a speciality grocery store that offers either organic products and/or
specialized meats.
Student workpoint
1.2
Be a researcher
Market research could lead an entrepreneur to sell only local, organic groceries
entrepreneur seeking to
3. Planning the business. Once the concept has been narrowed, the
enterprise. Develop a
addresses all the issues that need to be planned before operations begin.
http://www.statisticbrain.com/star tup-failure-by-industry/
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people starting the business to think through most of the specic
tnemeganam
elements of how the business will operate. For investors and nanciers,
the business plan can provide some condence as it indicates that the
that have laws that can inuence the legal organization of the business,
if they are sole traders (which are not legally separate entities from the
the laws of the host country. In many countries, businesses must have
specic licences and/or pass certain inspections before they can operate.
country. These taxes would include not only income taxes, but also
various sorts of payroll tax that must be paid, such as for employees’
5. Raising the nance. Once the basic business idea has been rened,
abusiness plan written, and legal requirements met, the business must
then raise nance – money – to get the business started and to support
the business until it can sustain operations from prots, which can
often take years. (Even if the business is protable from the beginning,
its cash requirements may be greater than the prots.) Any investor or
Student workpoint
lender must have condence in the accounting and auditing procedures
1.3
of the business. Who will prepare accounts in the business and who,
The business must attract start-up monies. Some or all may come from Choose one of the
the entrepreneur, or other investors may be required. When someone following businesses:
● Local delicatessen
and café
lose control of the business, so some of the capital will be in the form of
● Manufacturer of a
investment – selling shares – but some of the capital may be loans to the
● Travelling hairdresser
6. Testing the market. The nal stage is the launch of the business.
and beautician
How will that occur? Will the business begin on a small scale (a
“pilot”) to test consumer reaction? What will the criteria for success
up such a business.
aspects of the business.
The purpose of testing the market is to verify that the business idea will
opportunities.
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Even when the six steps outlined above are followed, start-ups still have
tnemeganam
what they did before the business even opened. For example, the business
properly satised, accounts were poorly kept and/or the business had
insufcient funds to operate, or the launch was unsuccessful and sales did
plan, the business may still fail. Sometimes failure results from a lack of
Student workpoint recognition of the business name in the marketplace. Other times failure
1.4 stems from the inability to recruit labour with the right skills. In other
Be an inquirer
Go to Kiva or one of
competitors). New businesses generally have less capital to rely on if the
compelling. What is it
donation to one of these Market research ● The market research was poor.
businesses?
● The target market wasn’t appropriate.
TOK discussion
1. Is business management
● Goals were too vague or contradictory.
an ar t or is it a science?
2. As a business can
the categories called Finance ● The accounts were not kept properly – cash ow,
entrepreneurs know in
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Revision checklist
tnemeganam
goods and services.
✓ Human resources are the people needed to carry out the aims of the
product or service.
materials.
create a product.
✓ A new business might face challenges at each stage. The business will be
Practice question
Starbucks
Starbucks, a large coffee store chain with its headquarters in the United
States, has been protable for years and thus has considerable cash and
has a large population and is a potentially large market. The laws of India
Starbucks.
Tata Coffee, a major Indian company that has its own coffee shops and is
In addition to coffee shops, Tata Coffee also owns coffee farms where coffee
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1
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tnemeganam
● sole traders
● par tnerships
Key terms
➔ Outline the main features of the following types of for-prot social
enterprises:
Private sector
the government
● cooperati ves
Public sector
enterprise:
Sole trader
government. The term “public sector” can be used in a broad sense,
a business owned and meaning any type of activity (including the military, police, and public
operated by one person. education) that is run by the government and has meaningful economic
No legal distinction exists implications. However, in business, “public sector” generally has a narrower
between the business and usage. A public sector company is one that the government owns. Common
the owner. Thus, the owner types of public sector companies include utilities, telecommunications
Private sector refers to those parts of the economy not controlled by the
that are not owned by the government. Most private sector businesses are
for-prot.
Par tnership
● Partnerships
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● Publicly held companies or corporations
tnemeganam
One of the main aims of all of these types of business is to generate prot.
The prots a business receives can be shown using the following formula:
Total revenues, often called “sales” or “sales revenue”, are all the income
received by the business in a specied period of time. Total costs are all the
costs incurred by that business in the same period of time. (The way that
revenue and expenses are measured is actually more complex than this
simple formula suggests, but for now the simple form is enough.)
Sole trader
Most people starting their own business typically begin with a limited
Being a sole trader fullls many of the reasons why people start a business:
being their own boss, seeing a gap in the market and wanting to respond
quickly, creating their own product, serving the community, or just living
their dream.
● The sole trader owns and runs the business. Sole traders may
trader. The sole trader is the business and, thus, is liable for all the
that the business has available for use. It can come from the personal
savings of the sole trader or from other sources, such as a loan from
have limited nance, either because their personal savings are limited
be reluctant to lend the sole trader money because of the high failure
trader is usually a small business that allows the sole trader to interact
the time, sole traders do not have to declare their nances to anyone
except the tax authorities, which want to know how much prot the
business has made for tax purposes. Sometimes sole traders borrow
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for other types of legal organizations. Sole traders usually have less legal
paperwork to ll out and le. Sole traders make all decisions themselves
One of the greatest advantages of being a sole trader is that all prots from
changes to operations.
can falter. Sole traders also have other disadvantages, which include
thefollowing:
daunting challenge.
● There may be stress and potential ineffectiveness because the sole trader
makes all the decisions, often with limited time to make them and
● There may be limited scope for expansion as the owner spends all their
● Generally there will be limited capital, which may also create a burden
on the business. The focus will be more on having sufcient cash for
mistakes made.
Most sole traders remain small businesses and typically the business comes
to an end when the sole trader retires or dies. Sometimes, sole traders
want to stay small, which allows them to make a decent living and not
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larger scale. Sole traders often have a niche in the market and see no need
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toexpand.
tnemeganam
When sole traders want to expand, the challenges are sometimes too great.
Their prots are not large enough to support growth, or the risks of growth
are too great. Just surviving may be the chief goal of a sole trader: many
sole traders give up or fail within the rst few years of existence.
Par tnerships
● Decisions are made jointly by the partners , who own and run the
business together. Partners may employ other people, but they make
all the management decisions. Partners also own the business, each
partners, who are liable for all of the partnership’s debts and other
upon to pay for 100% of the partnership’s debts, even if a partner owns
“buy into” the business, which usually means there is more capital
than if provided by only one person. Also, banks and other nancial
sole trader.
in thebusiness.
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a legally binding document that sets out the rights and duties of the
tnemeganam
■ responsibilities
■ nancing
■ division of prots
■ liabilities
partnership will slow down the registering of the business, but it will
Usually, prots are allocated and paid out according to each partner’s
percentage ownership.
division of labour.
personcan.
● Each partner has unlimited liability, which means that each partner
any other partner. The one exception to this liability is when, in the
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limited partners have limited liability but also limited control (both
tnemeganam
specied in the deed of partnership).
partnerships usually have less access to loans from banks and other
● An individual partner does not have complete control over the business
● Partners may disagree, which in the worst case could lead to the break-
up of the partnership.
In summary, partnerships are safer than sole traders but they are more
nance than sole traders, and because of the greater inherent stability,
and ofces around the world. Founded in 1931, the bank has grown
and has revenue in excess of $1.3 billion. Despite this growth and size,
Companies or corporations
America) are privately held companies and publicly held companies. Their
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Switzerland)
used, this type of designation means the same thing: that the business is
a limited liability company. This type of business is the only one that can
ofbusiness.
the business and the owners of the business are legally separated and the
liability of the company is distinct from the liability of those who own it.
The business – the company – has legal existence in its own right. The
responsibilities in the community: it must obey the laws of the land and
pay taxes. Unlike sole traders and partnerships, companies keep the prots
from their business activities – unless the owners (also called shareholders)
of shares of stock issued and outstanding. If that gure was 100,000, the
share the person owned. If one person owned 20,000 of the issued and
shareholder who owns a smaller percentage can still have a deciding say in
In the case of very large companies, it is rare for one person to own all or a
A large company like Walmar t majority of the shares. With smaller companies, it is not uncommon for one
might have hundreds of thousands person to own 100% of the shares, or for a small group of family members
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Shareholders are rewarded for investing in a company in three ways:
tnemeganam
● The price of the share(s) they hold may increase in value if
dividends are often not paid or are relatively small. With large,
because they want the regular dividend income that comes with share
company are not responsible in any way for the company’s debts. If the
business fails, then all the shareholders can lose is their investment in
a company, the shareholders are the last party to receive any monies
from the sale of the assets of a business; all debts will be paid rst).
have to. Businesses need funds for many reasons. Companies that
are doing poorly may not have sufcient cash on hand to be able to
pay dividends. Businesses that are growing rapidly also need money
to support the growth (to pay for more investment in equipment and
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of the company (and thus have a 1% say in who the executives are)
owners of the business want the business to have a separate legal existence
from them personally, thus giving the owners, as shareholders rather than
Key terms
Privately held company especially loans, from nancial institutions and governments.
an incorporated business
Achieving company status is often a turning point in the evolution of a
countries, shareholders of
major infusion of capital. However, when this occurs, the original business
owner loses some control over the business and could even lose personal
new owners (the shareholders) may hire executives to make all major
decisions. The original business owner (as sole trader or partner) may now
be merely an investor.
shareholders.
an incorporated business When a business reorganizes as a company, it can choose to become either
considerable information
company varies from country to country, generally it is low (around20). As
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have less onerous disclosure and reporting requirements than publicly held
tnemeganam
companies. For example, publicly held companies must produce audited
If the business decides to become a publicly held company (and the phrase
typically used is “the company is going public”), then it has to offer its shares
online. For example, the FTSE, Wall Street, the Nasdaq, theNikkei.
2012, for example, Facebook acquired $16 billion from its “initial public
offering” (IPO), or rst sale of shares to the public. More recently in 2020,
for example, Airbnb acquired $3.51 billion from its “initial public offering”
When a company goes public, it does lose some privacy. Publicly held
or “over the counter ”, via a
become open to everyone. Further, the business itself has no control over
Assessment ad vice
The main features of a company include the following:
the business (unless they are very small privately traded companies
sector ” with “privately
management decisions.
● The business and the owners are legally separate entities. The
shareholders are not liable for any of the debts of the business. The
As the business and the owners (shareholders) are legally distinct, the
owners can change. A person owning shares in the company can decide
business must have two documents drawn up and registered with the
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business sells its shares, it receives the price paid at the IPO. Thereafter,
the initial shares and any future gains (or losses) in price are to the
benet (or cost) of the shareholders only, unless the company issues
owners and the company are separate entities, so from time to time the
shareholders.
company. All that happens is that one partial owner of the business is
continues to operate.
Advantages of companies
and institutions are more likely to invest, and banks and nancial
● The investor has limited liability. Investors can lose only the value
The companies also benet from this. Many companies have a huge
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shareholder dies or sells their shares, or if any of the directors leave.
tnemeganam
Companies can go bankrupt and be liquidated (with all the assets sold
off to pay off the liabilities), thus terminating their operations. However,
orpartnership.
with customers and suppliers alike. It can also allow the business to hire
individuals with expertise for individual positions who will enhance the
Disadvantages of companies
owners must retain lawyers, have legally required paperwork lled out,
company, the owners must give up some control of their business. Even
if, during incorporation, former owners still retain 51% of the shares,
they must still answer to the new owners (other shareholders). In the
owners can have a very small percentage of the shares after the rm
performance has been weak – sales are down or prots are negative –
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may fall, which can damage the image of the company. Such a loss of
C oncep t
tnemeganam
share value can sometimes occur not because the business has done
CHANGE
negative news about another business in the same industry, a downturn
over if their share price falls, which, as noted above, sometimes occurs
Do some research to nd privately held companies are huge. Mars, Incorporated – which
Tsuen Tea
Founded in 1160 CE, Tsuen Tea is over 800 years old. Though the
building it operates in is not the original, the location is, just east of the
twenty-fourth generation of the Tsuen family to run the shop and tea
for-prot organizations.
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Key terms
Social enterprises vary in their legal organization. Some take the form
tnemeganam
Social enterprise
of one of the three models examined above (sole trader, partnership, or
public sector. Examples are for-prot companies that make meals and
depend on philanthropy.
deliver them to older people who for nancial or physical reasons are
unable to prepare their own meals. Such for-prot social enterprises bid for
For-prot social enterprise
Cooperatives
which might be distributed to
Some social enterprises are organized as cooperatives. A cooperative is owners. The primary aim of a
a form of partnership where the business is owned and run by all the for-prot social enterprise is to
“members”. Unlike partnerships, which in most countries have limits on provide a social service.
Cooperative
member participates actively in the running of the business.
social aims that take precedence over prots. Sometimes, for example in
Cooperatives exist in many
the case of credit unions, the social aims might mean lending money at
industries but are common in
may provide nance (loans) to its members who otherwise might not
through the cooperative, own the building, and surpluses are reinvested
arelower.
the building.
by the workers themselves, and the wages of the managers and the
Workers, fearful of losing their jobs, take over the business, sack the
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managers (or drastically reduce their pay), and reinvest all of the prots
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themselves could not afford. At other times, cost efciencies can only
a large scale. Thus, many producers pool their resources to obtain the
costefciencies.
also part owners of the business. In Europe and the United States, a
Grape farmers and wine producers Individual consumers become “members”, which entitles them to
can form a producer cooperative purchase groceries at the cooperative, often at lower prices than
In many cases, the cooperative’s priority is not to make prot. Rather, the
prices are too low, the cooperative runs the risk of failure by not reinvesting
in the business (and thus not updating its products or services), or not
the following:
This style of governance also stems from the nature of social enterprises,
which often rely on support or aid from others (such as workers willing
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spirit and generate greater willingness on the part of stakeholders to
tnemeganam
be supportive.
more care than other businesses, which often have greater prots
andprotability.
activities that are good for humans, society, or the environment. The
a long time to make decisions. If many parties are involved with the
for-prot social enterprise may not be sufcient in the long term. Most
with the size of the business. Without large prots, for-prot social
social enterprises tend to have lower prot margins and prots than
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Another random document with
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The good dame was Norman French, a Rouennaise by birth, and a
big, broad-shouldered woman with a keen, brown eye and a
pleasant, broad face, her black hair brushed smoothly back under
her wide-winged white cap; and her dress was that of a well-to-do
tradesman’s wife, and withal scrupulously neat. But there was no
beauty about her, while about the child there were both beauty and
grace of movement. Even in his plain clothes his little figure was
striking, and he had a fine, fully developed head for his years. His
reserve, his quaint air of dignity, were unlike the manners of the
children at play in the streets. Indeed, he had a fixity of purpose
which was to prove troublesome to Madame Michel. He accepted
her blandishments—but he remembered the attic.
One fair day his opportunity came, as all things come to him who
waits. Jacques des Horloges was busy in the shop, the apprentices
were deeply engaged on a large clock for M. de Rambuteau, and the
cat, M. de Turenne, ran away from Péron and hid. The child hunted
for his playmate with the zeal born of idleness, and finding the rooms
below empty, he clambered up the stairs to the upper floor. When he
came to Madame Michel’s room he stood transfixed at the open
door. The ladder was at the trap, and he heard madame’s voice in
the court, engaged in shrill altercation with a peddler. The child could
scarcely believe his eyes. M. de Turenne was forgotten; here was
something of far greater interest. He advanced cautiously, not
because he felt himself a transgressor, but because he was awed at
the possible revelation which lay before him. His heart beat as he set
his small foot on the first rung of the ladder, and then he drew back.
The stories of the hobgoblins beset him with strange misgivings; he
fancied that he heard a soft sound overhead; he hesitated, and a
little tremor of excitement ran over him. What would he see up
there? Ah, that was the question! He reflected, however, that he
would like to see a hobgoblin, and he did not believe that they ate
little boys. He was screwing up his courage, admitting to himself that
the possibilities were ugly. But curiosity is a strong motive power,
and the child was no coward, if over-imaginative, as children so
brought up are likely to be. He wavered only a moment or two;
decisive action was necessary before Madame Michel returned. He
took his life in his hand and climbed the ladder like a young hero; he
did not pause again until he reached the floor of the attic, for fear his
courage might fail. At the top he drew his breath and stood still; it
took a few minutes for his eyes to become accustomed to the gloom,
for there was only one window in the roof, and that a small one.
Then he looked about him with a sharp sense of disappointment, for
he saw nothing,—that is, nothing of interest to a child. It was a very
small room indeed, with the naked rafters above, and, strange to
say, in spite of madame’s neatness, a cobweb or two festooned the
corners. The window in the roof revealed the rough boards of the
floor and nothing more except three large plain chests of solid wood
standing in a row on one side. A barren spot to have excited so
much curiosity, and certainly not a promising home for hobgoblins.
Péron’s first impulse was to go down the ladder again, but he
thought better of it and began to move about the attic, examining it
until he assured himself that there was nothing to be seen except the
chests. Having arrived at this conclusion, he betook himself to these;
he tried the lid of the one nearest the trap-door, but it defied even the
industrious efforts of little fingers, and he turned away, disappointed
and piqued. The next was equally unaccommodating, although he
devoted more time to it; he found the lock and applied his eye to it, in
a fruitless effort to see inside. Curiosity now was whetted by defeat
and he approached the third, his little face more rosy than usual and
his lips pinched tightly together. He was destined to succeed at last;
the first touch assured him that the lid was unlocked, and he put out
all his child’s strength to lift it and peep in. Again a disappointment;
he saw only some neatly folded clothing; but something in the color
and appearance attracted him and he pursued his investigations.
With infinite care and labor he lifted the lid upright and turned it back
on its hinges, then stood gazing with pleased eyes at the objects
revealed. Nothing very unusual, only the small clothing of a child of
two or three years old, but of a quality and color so delicate that little
Péron examined them in wonder. They were as beautiful as the
gowns of the belles of the Marais. The chest was closely packed, but
the boy got no deeper than the upper layer. Here was a little coat of
the palest blue, and Péron knew that it was of velvet and satin, and
the lace on it seemed to him like the frost-work that he had
sometimes seen on the windows at Christmas. He fingered it gently,
for he was a careful child, and the tiny roses in the pattern delighted
him. It was while he was examining them that he felt something cold
touch his exploring fingers, and a tiny chain of gold slipped out from
the folds with a locket on the end of it. His attention was at once
absorbed by this new object of interest; it was small and round, and
Péron thought it was the brightest piece of red glass that he had ever
seen. On it was engraved a very curious picture,—curious to him, at
least,—a little lion rampant, a wreath or a scroll, and some figures
which he could not decipher. He did not know what it was, but he
took it nearer the window, when he discovered that the light made it
sparkle. The chain did not interest him, and he gently worked at the
links until he accidentally detached it, and then he dropped the chain
back into the chest and stood shifting the stone in his fingers to catch
the changes of light. He remembered seeing one such stone before,
—he thought it was on the neck of the Duchess of Rohan,—and he
was delighted with his discovery. It was still in the little nervous
fingers when Madame Michel came suddenly up the ladder, having
approached unheard while he was fascinated with his bit of red
glass. At first the good dame did not see the invader of her sanctum,
and when she did, she discovered the open chest at the same
instant and came forward with an outcry that frightened the child so
much that he drew back, clasping his treasure tightly to his breast,
and gazing at her angry face in mute, wide-eyed alarm.
“Mère de Dieu!” she cried, running to the open box, and looking in
with feverish anxiety, “what have you done, you little rogue?”
She examined the clothes with fierce scrutiny, but she could detect
no disturbance of their neat folds, for Péron had handled them so
delicately that no harm was done. She slammed down the lid, and,
locking it, thrust the key in her bosom before she turned to the child.
Her anger was slightly mollified, but there was still some agitation in
her face and manner, and she gazed searchingly at the offender.
“How long have you been here?” she demanded sharply.
The boy was still alarmed by her unusual conduct, and he kept the
bit of red glass tight in his little fist.
“I do not know,” he said, shaking his head; “I was looking for M. de
Turenne, I—”
“Mon Dieu!” cried madame, looking about behind the boxes, “is that
beast here? If he had got into the chest, he would have torn up
everything.”
“He is not here,” replied Péron soberly. “I could not find him, and I
came up the ladder.”
“What did you want to come up here for?” asked the woman
suspiciously, having satisfied herself that M. de Turenne was not in
hiding.
“I wanted to see the hobgoblins,” rejoined the child calmly, his
agitation departing as her anger subsided.
Madame looked at him in amazement, her eyes very round.
“Ciel! the boy is mad,” she said to herself softly, and then aloud, “You
are dreaming, mon enfant, what do you mean? There are no
hobgoblins in this house.”
“Mais oui, madame!” exclaimed the child wisely, “there are, here
under the roof; they said so;” and he pointed downward.
“They?” repeated the good woman, bewildered; “who are ‘they’?”
“Jehan and Pierre, the apprentices, and Manchette, too,” he replied;
“it must be true!”
“Ah!” ejaculated madame sharply; “so they gossip about this place,
do they?”
Gossip was a long word for little Péron; he wrinkled his brows.
“They told me of the hobgoblins,” he repeated stoutly.
Madame Michel’s face cleared a little.
“Ah, only nonsense to frighten the child!” she exclaimed, with a sigh
of relief. “Sainte Geneviève! I thought—” But she did not finish the
sentence; she laid a heavy hand on Péron’s shoulder.
“Listen to me,” she said, in a sharp, clear tone. “I have never
whipped you, mon enfant, but if you say one word of this attic to
Jehan, Pierre, Manchette, or any one else, I will surely whip you,
Péron, and you shall have no dinner; neither shall you go to the Rue
des Petits Champs;—do you understand me, eh?”
Péron looked up at her red face and his childish courage quaked; but
he was a proud child, and he inwardly resolved that he would never
bear a blow—he would run away first.
“Why do you not speak?” she cried angrily; “you hear me, enfant!”
“I will not tell, madame,” the boy answered gravely, “but you will not
whip me!”
She let go of him, amazed at the look on his face, an expression of
almost shame coming over hers. She knelt down on the garret floor
and kissed the child’s hand, the picture of humility.
“I beg your pardon, monsieur,” she said, tears in her voice; “you are
right, I will not whip you.”
There were tears in her eyes also. A moment later she rose, and
brushed the moisture from her eyelashes with the back of her broad,
strong hand.
“I am an old fool!” she said, giving the boy a push toward the ladder;
“go away, mon enfant, there is nothing here but some old chests, old
clothes, and old hopes!”
At this moment her eyes fell on the form of M. de Turenne, who was
sitting placidly at the top of the ladder, licking his gray fur, the end of
his tail moving in a charmed circle.
“Scat!” she cried, stamping her feet, “between the cat and the child I
shall go mad,” and she drove them both down the ladder and
slammed down the door after them.
All the while the piece of red glass had remained tightly clasped in
Péron’s hand. In his agitation he had held it unconsciously, and now
he was afraid to tell Madame Michel, dreading a repetition of the
scene. He crept away with it to his own little room and examined it
with a tremor of excitement. It was so pretty, and it had so nearly
precipitated a terrible calamity; for he felt that had madame struck
him, he should have died of shame. He was afraid to return the
stone and afraid to play with it, and it became a fresh cause for
embarrassment. However, he finally solved the problem by
determining to hide it away. In a little cupboard in the corner of his
room there was one shelf devoted to his treasures,—wax and paper
models of jacquemarts, broken watch-springs, some fancifully
shaped pebbles, a number of marvellously useless valuables, and
here Madame Michel never meddled. Therefore he loved it with the
pride of sole proprietorship, and here in a dark corner he stowed
away the bit of red glass wrapped in a soiled sheet of paper. For a
few days he took it out surreptitiously and played with it, and then he
forgot it and it lay there unheeded and unsought; for as yet Madame
Michel had not discovered her loss.
CHAPTER III
PÈRE ANTOINE
AFTER Péron had gratified his curiosity in regard to the garret and
found it such a bare and unprofitable spot, he speedily forgot it, and
only once again during his childhood was he to startle Madame
Michel with the mention of it. This was on the occasion of a
conversation which took place some months later in the shop. The
house at the sign of Ste. Geneviève was too small to harbor any of
the apprentices at night, so after work hours they took their
departure, leaving the members of the little family to themselves. As
none of his patrons ever visited him in the evening, Jacques des
Horloges was then at liberty to entertain his personal friends. The
clockmaker was a quiet man, not much addicted to conviviality, and
he had few visitors at such times, occupying himself frequently with
studies connected with his work or in straightening his accounts. It
was the family custom in the evening to gather around the table in
the living-room, which was cheerfully lighted with tapers. Madame
Michel was always knitting, her needles flying with marvellous
celerity, while her eyes were equally alert in observing Péron and M.
de Turenne. Jacques des Horloges was a broad-shouldered,
stalwart-looking man, a native of Picardy, his rugged face and
honest, kindly eye commending him to the observer. He had a
powerful build for one of his profession, and looked better suited to
bear the sword than to wind the machinery of delicate watches. His
dress was suited to his station in life and showed no signs of the
fortune which, it was whispered, he had accumulated. His only
ornament was a chain of gold around his neck which supported a
tiny, cruciform watch, so ingeniously manufactured that it not only
struck the hours but showed also the day of the month.[1]
It was on one of these evenings, when Jacques and his wife and
little Péron sat around the table, that a knock at the shop door
disturbed the quiet scene. Madame Michel rose and went to answer
it, still knitting, even when she walked across the dimly lighted shop,
not even dropping a stitch as she made her way between the tiers of
clocks. When she opened the door she curtsied low and greeted the
visitor with reverence as well as affection. A moment later she
returned to the living-room conducting a tall, thin man wearing the
plain black habit of a priest,—a man of middle age, stooping slightly
in his bearing and with a face of unusual sweetness and refinement
of expression. Michel greeted the new-comer with as much cordiality
as his wife had shown; and even little Péron ran to draw forward a
chair for him, while the cat rubbed himself against his cassock with
evident affection. There are some persons to whom all animals turn
with instinctive trust and affection, and there is no better sign, as
there is no worse than the aversion shown to others. The instinct of
an animal is more unerring than human perception: it recognizes
both brutes and traitors.
The priest smiled an equal welcome upon all, but there was
perplexity in his blue eyes. He sat down and laid his broad-brimmed
hat on the table and clasped his hands on his knee; and he had
handsome hands, slender and nervous, with delicate finger-tips. His
face was pale, with lines about the thin lips and under the large eyes,
showing care, anxiety, midnight vigils; he had the face of a student,
and the hair, already gray at the back of his head, was white on the
temples. His gaze rested now on the child, who, having seated the
visitor, had resumed his own place on the floor, where he was cutting
out a paper clock. The priest watched him attentively, while Jacques
des Horloges and his wife waited in respectful silence for him to
open the conversation. Something about little Péron interested Père
Antoine so much that it was some moments before he looked up,
and when he did, it was with a grave face.
“I have strange tidings,” he said softly, glancing from Jacques to his
wife. “M. de Bruneau has been arrested and will be condemned to
death.”
Michel stared at him in blank amazement, and madame uttered a cry
and dropped her knitting-needles. The priest made a sign with his
hand toward the child on the floor, and it had its effect at once; both
his auditors restrained their agitation.
“I cannot understand,” Jacques des Horloges said. “What was his
offence? Not a plot against the king, surely?”
“Ay,” Père Antoine replied soberly, “something of that sort, although a
much exaggerated charge, manufactured, I fear, by his enemies. He
was taken on the Rue St. Denis, on information furnished by one
high in the favor of Albert de Luynes.”
“Who is he?” asked Michel eagerly.
The priest glanced again at the child.
“It is M. de Nançay,” he said, in a low voice; “one of the witnesses
against the accused is his cousin, Lemoigne de Marsou.”
“Ah!” ejaculated Jacques des Horloges, nodding his head slowly.
“A trap, of course, mon père,” Madame Michel exclaimed, leaning
forward in her interest, her knitting forgotten.
“It would seem so,” Père Antoine replied thoughtfully. “M. de
Bruneau was led into making some admission. There has been too
much sharp practice in tracing plotters. I truly believe that de
Bruneau may be innocent of all treason, but it cannot be proved.
Since his majesty reached his majority, madame his mother has
been discontented with her position. She cannot accept any place
but the first. She has ruled so long during the king’s childhood that
she is not willing to give up. It is said publicly by her partisans that
she has been admitted to the council merely for the sake of
appearances and has no voice in anything, though her name is
used, and the people hold her responsible for affairs in which she
has no part. The young men of her party are therefore constantly
plotting to reinstate her in authority, and her jealousy of her son
fosters these intrigues both here and in her court at Blois. It is some
affair of this kind in which de Bruneau is implicated, but I think that
M. de Nançay is far more likely to have burned his fingers than this
young man.”
“It is strange,” remarked Jacques des Horloges; “M. de Bruneau is
the last man of whom I should expect such disloyalty; he could not
have been in his senses.”
“He says that he had been drinking when the confession was forced
from him,” Père Antoine rejoined; “it was at Archambault’s pastry
shop.”
“You have seen him, then?” asked Madame Michel eagerly.
“I went immediately to the Châtelet,” the priest replied; “I found him
much as I expected. He has not the fortitude to meet such a
calamity.”
“He has powerful patrons, mon père,” the goodwife said; “is there no
hope of intercession?”
The priest shook his head.
“None,” he answered; “there have been too many plots, too many
intrigues; they will make an example of him. The whole weight of the
Marquis de Nançay’s influence, never greater than now, will be
thrown into the scale against the prisoner.”
“Ay,” remarked Michel sternly, “’tis his opportunity to be rid of a
troublesome rival, and marvellously well planned too, if I mistake
not.”
“I fear so,” said Père Antoine thoughtfully; “it has worked out
strangely, at least. Certainly, M. de Bruneau’s death is in his favor.”
“I am sorry for the accused,” said the clockmaker; “I remember him
from a lad of twelve. ’Tis a sad end for a young man and a soldier.
Did you tell him aught of that matter whereof we spoke before?” he
added, glancing anxiously at the priest.
Père Antoine shook his head. “Nay,” he answered. “How would it
profit us? He is as good as a dead man, so could not aid us if he
would, and I have never been sure that he would. He is a feather-
brain, and we cannot put so weighty a matter into idle or desperate
hands. He cannot aid us, but he might work us some mischief with
his careless tongue even now. I deemed it best that he should die in
ignorance of that which would not serve him, and might harm
others.”
“I have felt much as you do, father,” Michel rejoined, after a
moment’s silence; “once or twice he came here to the shop, talking
with me freely, yet I did not wholly trust him. He seemed to me a
harebrained, ambitious young man, desiring nothing so much as his
own aggrandizement and not likely to welcome the thought that one
stood ahead of him upon the road to name and fortune.”
The priest did not immediately reply; he was leaning forward and
fingering out a silent piece of music on the table with his slender
fingers.
“There might have been some question as to his claim,” he said
thoughtfully; “in a case like this, where there is confiscation, he might
have had a better chance than the true heir.”
Madame Michel drew her breath deeply, clasping her hands to her
bosom.
“The finger of God is in it!” she exclaimed devoutly.
“His hand directs all things,” Père Antoine returned quietly; “it is our
blindness which does not recognize it.”
There was another pause, and in it Madame Michel surreptitiously
wiped a tear from her eyes. The regular throbbing tick of the clocks
sounded distinctly from the shop, and little Péron began to doze, with
his head on the low stool in the corner; it was past his bedtime, but
he was forgotten.
“When will M. de Bruneau be tried?” asked Jacques des Horloges, at
last.
“Immediately,” Père Antoine replied; “’tis a well established case;
there are several witnesses, all relatives of M. le Marquis.”
“Sent purposely, no doubt,” exclaimed madame indignantly. “The old
rogue!”
“I am sorry for the poor gentleman,” Michel said once more; “he is
like to have a short shrift. Will you see him again, mon père?”
“I have a permit from the king,” the priest replied, “and I shall stay
with the unhappy prisoner to the end. There is absolutely no earthly
hope, and I fear M. de Bruneau has never set great store by the
heavenly.”
As he spoke, he rose from his seat to leave them, and the movement
startled Péron, who opened his sleepy eyes just as the priest
glanced in his direction.
“The child has been asleep,” Père Antoine remarked, smiling. “How
great a blessing is the unconscious freedom from care! I had well
nigh forgotten your present, Péron,” he added, thrusting his hand
into his wallet and drawing out a pale blue silk handkerchief; “I
brought this for you, little one, because you begged for a silk
handkerchief the other day.”
The child was wide-awake now and came running to the priest, all
eagerness for the small bit of silk in Père Antoine’s outstretched
hand.
“Oh, madame, it is just like the beautiful silk in the chest in the
garret!” Péron cried, delighted; “the same pale blue—but it is not so
thick and glossy!” he added, on examination.
At the child’s words both men glanced quickly at Madame Michel,
whose face flushed scarlet.
“Hush, Péron!” she exclaimed angrily, “you do not know what you
say.”
“How is this, mother?” asked Jacques des Horloges gravely.
She laughed a little, her agitation giving way to a milder feeling.
“I left the ladder down and the little rogue is as active as a cat and
more curious,” she said, apologetically.
Père Antoine smiled, laying his hand softly on the child’s curls.
“The likeness to his father grows daily,” he remarked to Jacques; “do
you not see it?”
“I try to think it is in my eyes,” rejoined the clockmaker bluntly; “it is
like to do him more mischief than good.”
“He is in higher hands than ours,” replied the priest sadly, making a
sign as though he blessed the child, before he bade them good-night
and went on his solemn errand to the Châtelet.
CHAPTER IV
THE PASTRY SHOP ON THE RUE DES PETITS
CHAMPS