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Flashcards in business enterprise Deck (6)
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the purpose of business activity and enterprise

spotting an opportunity, developing an idea for a business and satisfying the needs of customers.
NEEDS: things that customers need; food, water, sanitary products
WANTS; things that customers want; luxury items, electronics


characteristics of an entrepreneur

risk-taking, confidence, motivation, good people skills, creativity, determination


the concept of risk and reward:

RISK: the chance that the business might not turn out good. you might lose everything. lose all your money. business could fail. could possibly have debts


the concept of risk and reward:

REWARD: your business could end up doing well resulting in profit. could receive dividends and the business may have capital growth. a sense of satisfaction and would be in control


business planning

A business plan is a written document that describes a business, its objectives, its strategies, and its financial situation.

The business plan has many functions:
The plan provides a logical structure to thinking about the business,
It encourages the entrepreneur to focus on what the business is really about and how customers and finance-providers can be convinced,
The plan provides something which can be used to measure actual performance
good for setting out objectives and aims for the business


aims and objectives to a business

An aim or objective is a statement of what a business is trying to achieve over the next 12 months. For example, a business can set itself any of these targets:
increased profit
increasing market share