1.1-1.4

Question 1

Risks of starting your own business

Answer 1

Financial, stranded relationship and health

Question 2

Rewards of starting your own business

Answer 2

Financial, self satisfaction and independence

Question 3

Enterprise

Answer 3

An opportunity to provide a product or service that people are willing to pay

Question 4

What are business aims?

Answer 4

Overall, goal of the business

Question 5

What is business objectives?

Answer 5

Measurable target of how to achieve the business aims

Question 6

Is aims long-term or short term?

Answer 6

Long-term

Question 7

Are objectives, long-term or short term

Answer 7

Short term

Question 8

What is a business plan?

Answer 8

Set out how the owners/managers of a business intend to achieve its objectives

Question 9

What happens if you don’t have a business plan

Answer 9

Your business is likely to drift

Question 10

What does business planning help out with?

Answer 10

Finance, focus on goals, and aims, organise and performance

Question 11

What are business plans are advantages

Answer 11

Allows businesses to review the ideas. Reduces risks allows the business to review its progress and reduce risk of failure

Question 12

Disadvantage in a business plan

Answer 12

Poor quality or inaccurate constantly updating and requires time and effort

Question 13

What is a sole trader?

Answer 13

A business owned and controlled by one person

Question 14

Can sole traders employee of people

Answer 14

Yes

Question 15

Have sole traders got unlimited liability 

Answer 15

Yes, that means they can lose their personal possessions

Question 16

What does unlimited liability mean?

Answer 16

The owner of the business risks losing his/her personal possessions to pay off their depths of the business, if it fails or owes money

Question 17

Advantage of partnership

Answer 17

More shared workload and ideas, financial information and can be ill so it doesn’t make a problem

Question 18

Disadvantages of partnership

Answer 18

Profit has to be shared between the partners there may be disagreements Decision-making may become slower

Question 19

What does sleeping partner/limited partner mean?

Answer 19

They invest money into the business, but do not take part in the day-to-day running of the business or any decision-making

Question 20

What does LLP mean?

Answer 20

Limited liability partnership

Question 21

What are some advantages of becoming LLP?

Answer 21

Their liability is limited

Question 22

What is a disadvantage of a LLP?

Answer 22

They have to public their account

Question 23

What is a deed of partnership?

Answer 23

legal document

Question 24

Which two partnerships or traders are unlimited, and which is limited

Answer 24

So trader and partnership is unlimited liability, and LLP is limited liability

Question 25

What is a PLC?

Answer 25

Public liability company sell shares to the public

Question 26

What is LTD?

Answer 26

Private limited company can only sell shares privately to families and friends

Question 27

What is companies?

Answer 27

Businesswear the owners are shareholders and they got limited liability

Question 28

What are shareholders?

Answer 28

Owners of private and public Limited companies

Question 29

What are shares?

Answer 29

A unit of ownership in a limited company

Question 30

What is limited liability?

Answer 30

Can only loose what money you have put in to start with

Question 31

What are some advantages within private limited company

Answer 31

Limited liability, easier to waste finances as can sell shares continuity and retain control

Question 32

What are some disadvantages in private limited company?

Answer 32

Finances limited to Fg, friends and family, less privacy shareholders

Question 33

Advantages within a public limited company

Answer 33

Limited liability can raise large sums of capital

Question 34

Disadvantages within public limited company

Answer 34

Create costs if someone gets over 51% of your company shares you lose your business

Question 35

Name some business subject

Answer 35

Profit, create market share, growth, survival, service

Question 36

What does market share mean?

Answer 36

The percentage of total sales that a business has in a specified market

Question 37

In benefits of setting objectives, what is direction?

Answer 37

Clear objectives will allow a business to decide on the direction. It should take, for example, whether it should expand or not.

Question 38

In benefits of setting objectives, what is focus for employees

Answer 38

Important, that all the employees follow the business objectives to help increased efficiency

Question 39

In benefits of setting objectives, what is measurement of success?

Answer 39

All allows a business to measure its success. The business can then correct or change it business strategy if it’s not working.

Question 40

What is survival?

Answer 40

A short term objective, typical for start-up businesses of when a new firm enters the market or time at crisis

Question 41

Profit maximisation

Answer 41

To make the most profit possible of objectives, business may have, which are linked to this equation revenue or decreasing costs

Question 42

Growth

Answer 42

To expand the business possibly be opening new locations in its country or aboard

Question 43

Market share

Answer 43

To increase the volume of values of sales measured as a percentage of the entire market

Question 44

Customer satisfaction

Answer 44

An objective to keep customers happy for good service or better products than the competition