Free Essay

Fixed Assets

In: Business and Management

Submitted By benj97s
Words 281
Pages 2
Fixed assets business use to operate include a premises in which they operate from, this can be someone's front room, or large tower buildings. Buildings play an important role when it comes to the image of a business and can influence different customers. Many financial businesses (banks) such as Lloyds TSB and HSBC have many large buildings located in central London, this gets the attention of all the public driving by as it's a busy area.
Depending on the organisation business may rely on motor vehicles as a recourse. Organisations such as food delivery use vehicles very often and if one of their vehicles break down they will lose customers as they will not be able to deliver their food .
Business use security as a physical recourse as it will protect the assets in store. Most business have different types of security such as CCTV and alarms to ensure that no-one attempts to steal their items as it will cost the business more money to replace.
Most businesses involve technology in their ways of operating, marketing, advertising etc. Therefore ICT equipment such as computers is a physical asset used in business today to communicate with a wider range of people and to use the internet to advertise as it's a cheaper and relatively more effective way to advertise a smaller business.
Machinery are mostly used in organisations which operate from a factories, whether they are making clothing or electronic devices, machinery will be useful as it will allow them to produce the goods quickly and more efficiently as without any machinery employees will have to do it by hand and mistakes could be made and will take much longer.

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