Flashcards in Section 1 Deck (15):
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
What is an enterprise?
The skill involved in wanting to start and run a business
Motives of starting up a business
Making a profit
Satisfaction that comes from success
Make a difference-charity
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.
What does a business plan include?
Results of market research
How business will operate
How can competitors make markets work better?
Improving these factors:
Methods of product differentiation
Strong brand image
Unique selling point
What is a sole trader?
Any business that is owned and controlled by one person.
Example, plumbers, hairdressers, or photographers
Pros and Cons
Easy to set up
Small capital investment means reduced start up costs
Freedom to make decisions
What are partnerships?
Businesses owned by more than 2 people
Pros and Cons of partnership
Someone to consult on business decisions
Take more holiday
What are limited companies?
Incorporated, divided into shares.
Have limited liability
Run by board of directors
What are the 2 types of limited companies?
Private limited company (ltd)
Public limited company (plc)
What is franchising?
When you buy into an existing business and use their business idea