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GCSE Business Studies Unit 1 > 1.1 Enterprise > Flashcards

Flashcards in 1.1 Enterprise Deck (15)
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1

Give the definition of an entrepreneur

Someone who is willing to take risks to start a business

2

Why do people start their own business?

To bring in new ideas
More independence
Get to keep all of the profit made
Don't want to be told what to do by boss
To persue your own dream/idea

3

What qualities are required to be an Entrepreneur?

Good Skills
Creativity
Determination
Confidence
Social Skills
Focused
Innovative
Hard Working

4

What is the Primary Sector?

Business that extracts from nature and supply raw materials

5

Give an example of a Primary Sector

Farm

6

What is the Secondary Sector?

Businesses that are manufacturers

7

Give an example of the Secondary Sector

Factories

8

What is the Tertiary Sector?

Businesses that provide Services

9

Give an example of a tertiary sector

Supermarket

10

What is a Social Enterprise?

An organisation that isn't motivated by money only but also wants to provide a service to benefit the community

A Charity

11

How are products distributed?

Goods or Services

12

What is a Franchise?

The right given by one business to another to sell goods or services using its name

13

Give the definition of a Franchisor

Someone who sells a business to a Franchisee

14

Give the definition of a Franchisee

Someone who buys a business using its name as well as selling goods

15

What are the Advantages and Disadvantages of opening a Franchise?

Advantages:

Candidates are carefully chosen by Franchisors

Products have been approved to prevent failure (less risk)

Don't need to invest as much money

Operating a well known business

Training is provided to start the business

Equipment is also provided

There are back up services (Advice, Loans, Insurance)

Disadvantages:

A percentage of sales and profit goes to Franchisor

Less Flexibility with products

Original Training can be long

No freedom to operate outside the Franchise agreement

Money is lost if business fails

Franchises can't be sold without Franchisors agreement