Buisness Paper One Flashcards
(15 cards)
Enterprise
Seeing an opportunity to provide a product or service that people are willing to buy
Reasons to start a business
Be own boss
Pursue own personal interests
Earn income
Do something positive for society
Characteristics of an entrepreneur
Creative
Risk taking
Determined
Confident
Able to learn from failures
Reasons for a business plan
More likely to get investors
Reduces risk of failure
Budget for resources
Components in a business plan
Aims and objectives
Marketing plan
Human resources
Production
Finances
Role of business plan
Identifying markets
Helping with finance
Identifying resources that a business needs to operate
Aims and objectives
Help get loans
Sole trader advantages
Owner keeps 100% of profits
Owners can keep their finances private
Owner makes all decisions
Low start up costs
Sole trader disadvantages
Unlimited liability
Lack of continuity
Lot of responsibility
Skill shortage
Shortage of money (maybe)
LTD ( private limited company )
A business owned by shareholders. Shares are sold privately to friends and family.
PLT (public limited company)
Business owned by shareholders. Shares are sold publicly on stock exchange.
Business aims and objectives
Survive
Make a profit
Market share
Expand and growth
Providing a service
Reasons to set aims and objectives
All employees working towards a common goal
Help measure success of business
Employees given clear and relevant targets and rewarded when they meet them
Stakeholders
A group of individuals who have an interest in the business
Internal stakeholders
Business owners and employees
External stakeholders
Local community, suppliers, customer and government
