business activity Flashcards
(23 cards)
characteristics of a entrepreneur
creativity
risk taking
determination
confidante and positive attitude
what are some rewards in a business
financial - make money
independence - can be their own boss and not told what to do
self satisfaction- seeing their idea work
what are some drawbacks in a business
financial - could lose money or go bankrupt
health - health may suffer due to strain and long hours
strained relationship due to long hours
what is a business plan
sets out how a business will intend to achieve its aims and objectives
what are the 7 contents of writing a business plan
the business idea - what is it ?
people - who will run it
market research - to find out whether consumers are interested in the product or service
finance - where will being come from
objectives - when and how to met them
target market - who is it hoped will buy the product or service
competitors - how do you intended to beat the competitors
what are the role of a business plan
identifying market - who is the product or service aimed at
help with obtaining finance - to give confidence to a bank
identify necessary resources - what equipment you need
set out the aims and objectives
opportunity to think through and consider all aspects of running the business
what’s a sole trader
one person who owns a business
advantage of a sole trader
easy to set up
cheapest type of business
retain control
disadvantage of a sole trader
unlimited liability - responsible for all the debts in the business
unless if sole trader - no one else to run the business
long hours strained relationship
what is a private limited company
a company that has it shares private
advantage of private limited companies
limited liability
share holders can control who buys shares in the company
company can raise money easier
disadvantage of private limited company
more expensive to set up
financial information is public
cannot sell shares to the general public
what is public limited compared
can sell shares to the public on stock exchange
advantage of a plc
easier to borrow money
limited liability mabel to raise large amounts of capital form general public
disadvantage of plc
no control over who buys it shares
more financial information is available to the public
lack of continuity
what is a partnership
with two people who own a business
advantage of a partnership
more than one person so easier to raise capital
more skills viable
able to share out work
disadvantage of a partnership
profit shared between all partners
unlimited liability - each partner is liable
disagreements between partners
shortage of capital
what is a deed of partnership
sets out the business relationship between the partners and reduce uncertainty
what will the deed of partnership include
how much capital has been contributed to each partner
how the business is to operate and role it partners
what’s a sleeping partner
provides money for the business but not involved with running. the business
What are business objectives?
Survival profit growth providing a service
