1 - Business Activity Flashcards
List some characteristics of an entrepreneur.
Some from: Risk-Taker Creative Innovative Inventive Confident Determined Resilient Perseverance
List some risks of starting a business.
Some from:
- The business may not be popular, therefore the business will not grow and therefore will not profit.
- Investors may not want to invest in you if they do not like your business.
- If the business does not go anywhere, then money is wasted.
List some rewards of starting a business.
Some from:
- You can keep profit for yourself.
- You can work hours that you want to work as you are self-employed.
- You later can sell your business for money if you want to.
Name three things that should be in a business plan.
Three from:
- Information about the owber
- Business Name.
- Business Goals.
- Financial Information.
- Marketing.
- Aims/Objectives.
- Product(s) Details.
- Personal Details.
- Competition.
- Forecasts.
What is a PLC?
A PLC is a Public Limited Company.
What is a LTD?
A LTD is a Private Limited Company.
Define entrepreneur.
An entrepreneur is a person who takes the risk of starting and running a business enterprise.
How does a business plan help an owner to identify market?
A business plan can help to identify a market by encouraging the owner to research the potential customers.
These could be in a certain market sector - for example selling resources to schools.
It may also help to profile the customers, for example business teachers who are looking for class resources.
How does a business plan help to obtain finance for the business?
A business plan may help to obtain finance from; venture capitalists, banks, angel investors, or even smart family members.
They are going to want to see numbers that say your business will grow and that they can make a profit.
The better the financial information, the more confident they will be in investing - after all, they don’t want to lose their money.
How does a business plan help to identify resources needed to start or run a business?
A business plan can show the input - process - output of creating the product providing the service.
This may help to flag any critical resources that will be needed by the business.
For example, a new restaurant business will need a great chef (human resources), ovens, ingredients, premises, tables, chairs, waiters, etc.
How does a business plan help the business owner to achieve their aims and objectives?
A business plan can show how a business aims to achieve its goals.
For example, it may show any planned activities of the business - a launch might for a new restaurants.
It should also show how these aims will be financed.
What are the SMART objectives?
S - Specific M - Measurable A - Achievable R - Realistic T - Time
What are some benefits of a business plan?
Some from:
- Easier to get investors
- Easier to communicate objectives
- Includes information, e.g. marketing, target audience and goals.
This helps you focus on your future, and everyone can follow a set plan.
What are some drawbacks of a business plan?
Some from:
- Can be very time consuming
- It’s only a plan, it doesn’t guarantee success. The numbers are only predicted and may not be what actually happens.
- If the plan isn’t flexible, the some problems may occur. The plan must be viable to market change.
What are the four types of business?
- Sole trader
- Private Limited Company (LTD)
- Public Limited Company (PLC)
- Partnership
What is an advantage of being a sole trader?
One from:
- Work your own hours
- Get to keep profits
- Typically low set up costs
What is a disadvantage of being a sole trader?
One from:
- Unlimited liability
- Large workload/demand
What is a sole trader? Also give an example.
One person who owns a business. An example of one could be a plumber.
What is a partnership?
Two people who own a business.
What are some benefits of being a partnership?
Some from:
- Shared responsibility
- Able to open for business even if one owner is away/ill
What is a drawback of being a partnership?
Unlimited liability
What is a private limited company?
A private limited company is owned by multiple people The ownership is private.
What are some benefits of being a private limited company?
Some from:
- Limited liability
- People cannot buy shares unless invited to
- You keep control
- You can use your home as an office
- Tax benefits
What are some drawbacks of being a private limited company?
Some from:
- You cannot raise a lot of finance from shares as you cannot sell them to the public
- You have to pay corporation tax
- Administration responsibilities
- Public accounts
- More costs
Why may a business change their aims/objectives as they progress?
- They may reach those objectives, sometimes before they expect to. They also may take longer to reach certain objectives.
