Section 1 Flashcards Preview

Business > Section 1 > Flashcards

Flashcards in Section 1 Deck (15):
1

What’s the difference between goods and services?

Goods are physical items like books or furniture.
Services are actions performed by other people to aid the customer e.g. barbers

2

What is an enterprise?

The skill involved in wanting to start and run a business

3

Motives of starting up a business

Making a profit
Satisfaction that comes from success
Make a difference-charity

4

What is a business plan?

Report by a new or existing business that explains all of its research finding and explains why the business will succeed.

5

What does a business plan include?

Results of market research
Competitor analysis
Idea
Key targets
Finance required
How business will operate

6

How can competitors make markets work better?

Improving these factors:
Price
Product range
Customer service

7

Methods of product differentiation

Strong brand image
Unique selling point
Competitive factors

8

What is a sole trader?

Any business that is owned and controlled by one person.
Example, plumbers, hairdressers, or photographers

9

Pros and Cons
Sole Trader

Adv:
Easy to set up
Small capital investment means reduced start up costs
Freedom to make decisions

Disadv:
Responsibility
Long hours
Unlimited Liability

10

What are partnerships?

Businesses owned by more than 2 people
Example; Dentist

11

Pros and Cons of partnership

Adv;
Someone to consult on business decisions
Take more holiday

Disadv:
Conflict
Unlimited Liability

12

What are limited companies?

Incorporated, divided into shares.
Have limited liability
Run by board of directors

13

What are the 2 types of limited companies?

Private limited company (ltd)
Public limited company (plc)

14

What is franchising?

When you buy into an existing business and use their business idea

15

What is a franchise a venture between?

Franchisee & Franchisor