biz plans + comeptitive market +start up options

Question 1

1)benefits os biz plan

2)draw backs of biz plan

Answer 1

1- helps secure finances
- encourages research( reduces risks)
-makes entrepreneurs look at all aspects of biz( identify potential problems)

2)- time consuming
-must constantly update - result in missed biz opportunities
- often overestimate sales and underestimate costs
-many entrepreneurs lack extertise to produce biz plan.

-

Question 2

what biz plan includes ( most imp things only)

Answer 2

• cashflow forcast|
  budget
  -financial profit / loss
  sales forcast
  market analysis
  objectives
  competitions

Question 3

importance of biz plan

Answer 3

helps reduce biz risk
obtain finances

Question 4

consequences of intense biz competition

Answer 4

• biz begins to compete on low prices /
  -will make biz more likely to innovate
  -will encourage biz to control their costs better

Question 5

disadvantage of competing in competitive biz

Answer 5

1) rivals competeing for same customers -> more saturated market ->loss in biz cash flow->loss in customers->decrease reptation

2)more pressure on biz to provide quality products->need of more sources of finances-> change in suppilers _>better market research

Question 6

sole trader

Answer 6

• keeps 100% profits
• privacy of accounts
• full control of decisions
  -unincorporated
  -must register hmrc as self employed
• unlimited liability
  suited to small businesses

Question 7

partnership

Answer 7

-unincorporated
-expansion is easier
- financial info remains private
-possible conflict between partners
unlimited liability

Question 8

plc

Answer 8

• incorporated
  -more costly than sole tradors
• raises more money esily
  -subject to government scrutiny and subjugation
• financial info public
• limited liability

Question 9

LTD

Answer 9

-shares not sold publicly
-more costly than sole trador
- financial info DOES NOT remain private
- limited liability

Question 10

franchising

Answer 10

when franchisor grants license to a franchisee to control using biz format

Question 11

franchisor

Answer 11

->Economies of scale - more biz open as franchise the greater bargaining power
-> if franchisee does badly franchisor must take blame

Question 12

franchisee

Answer 12

-> support from franchisor
->as well as license payment there is also royalty payments
->less control than startups
->inflexible