Business Activity Flashcards
(39 cards)
“Entrepreneur”
A person who takes the risk of starting and running a business enterprise
“Spotting an opportunity”
The ability to see the need for a particular product or service that customers need
“Characteristics of an entrepreneur”
The features of an entrepreneur which include being determined, creative, and having the ability and confidence to take risks
“Rewards”
The benefits an entrepreneur receives from starting up and running a business. They can be financial or non financial
“Risk”
The possible losses that an entrepreneur may suffer from starting and running a business
“Goods”
Tangible products sold by businesses to customers
“Services”
Intangible products sold by businesses
“Business plan”
A simple plan which sets out details on products or services being sold, where the finance is to come from to start the business and how the product or service is to be marketed, and the market research to show there’s a need for what’s being sold
“Finance”
A business word used instead of money. The finance needed to start a business is the money needed to do so
“Resources”
The things a business needs to make it work
“Aims and objectives”
What the business is trying to achieve and the steps taken to achieve it
“Sole trader”
A business owned by one person
“Unlimited liability”
This is where responsibility for all the debts of the business rests with the owners of the business. If the business can’t pay its debt, the owners could lose their personal possessions
“Limited liability”
The owners of the business (shareholders) is not personally responsible for any debts the business may have. They can only lose what they have invested if the business becomes insolvent
“Partnership”
A business owners by two or more people but hasn’t sold shares
“Deed of partnership”
A document setting out the operations of the partnership, including the amount of capital to be invested and how profits will be shared
“Sleeping partners”
A partner who has invested capital, but is not involved in the day to day running of the partnership. They have limited liability because they aren’t involved in the day to day decision and running of the business.
“Capital”
The money raised to start or develop a business
“Private limited company”
Usually a smaller business that is owned by at least 2 shareholder. Shares cannot be sold to the general public. They are usually sold to family, friend and employees
“Public limited company”
A large business where shares have been sold to the general public on the stock exchange. Vast amount of capitals can be raised
“Shareholder”
A person who has bought a share in a business. They are the owners of public and private limited companies
“Dividends”
A share of the profits given to shareholders
“Stock exchange”
A centralised location where the shares of publicly traded companies are bought and sold
“Start up”
Business just setting up or have recently been set up
