2.1 & 2.2 Flashcards
What are the six stages of the enterprise process?
Identification of problem, exploring different solutions, action planning, implementing the plan, monitoring and evaluating progress.
What is a sole trader?
One person who buys and sells products with unlimited liability.
What is the company?
An organization that buy and sells products run by a board of directors with limited liability
What is a franchise?
A business that’s licenses it shop or restaurant to be run by a different owner using the same brand name.
What is the main objective of a social enterprise?
Benefits of the community or environment
What is the main objective of a business enterprise?
Make profit, increase brand image, increase customers, increase brand awareness
What are the pros of a franchise?
Expansion is fast, franchisee pays for most investment, franchisee motivated to work hard
What are the cons of a franchise?
Low control, brand risk if it goes badly, less profit
What are the pros of a cooperative?
Help owner get better price
What are the cons of a cooperative?
Conflict of interest as owners are also customers or suppliers so often not very profitable. Slow decision-making.
What are the advantages of being a private limited company or a public limited company?
More money to invest and grow to serve more customers and make more profits
What are the advantages of being a sole trader or partnership?
More control as your owners, better customer service, ability to focus on niche market.
What is a cooperative?
A business that is equally owned by all its members set up by customers or suppliers of a product to help get better prices through economies of scale
What are the pros of a joint venture?
Local knowledge, cost shared, expertise shared, access to existing distribution and customers.
What are the cons of a joint venture?
Profit shared control shared
