Buisness activity Unit 1 Flashcards
what is a business?
provides goods or services
what’s a entrepreneur?
successful business people
what are 4 characteristics of a entrepreneur?
creativity
risk taking
determination
confidence
what is a average entrepreneurs back round?
they normally start from poorer backgrounds
what is 4 risks of starting a new business?
failure
losing money
working very long hours
causes owner stress
what are 3 rewards of starting a business
financial rewards
independence
pride
what the business wants to achieve in the first year? what’s that called
aims& objectives
What is Market research
gathering information
What is a sole trader?
Owned by one person
What’s 2 positives of being a sole trader
make all their own decisions
chose what they want to do with profits
What’s 2 downsides of being a soltrader
struggle to take time of
hate unlimited liability
What’s a partnership?
two or more people own the business
What’s a downside of being in a partnership
falling out with the other owners
have unlimited liability
What is a limited company
they can only lose the money they put into the business and not their house
What’s a positive of a limited company
they can’t lose their house
What’s a downside of having a limited companies
decisions take long as there’s more ppl who need consulting
What is Unlimted liability
where they can lose everything ( their house their assets)
What is Aims?
what the business what’s to achieve within 1-5 years
What is a objective
smaller targets that will help a business to achieve their aims
2 things a new business aims will be
survival
break even
recognition
2 things a large business aims will be
Profit
Growth
Market share
What is market share?
part of what they own
What are stakeholders?
people who have an interest in a particular buisneds
What’s a internal stake holder?
directly involved with the business
(employees)
what is a external stakeholder?
interested in the business but not part of it
(customers)
What are 2 things a owner would want out of their business
Profit
survival
buisness growth
What are 2 things Employees would want in the business
Fair wages
treated well
feel valued
What are 2 things Customers would want from the business
Value for money
good quality products
good service
What are 2 things a supplier would want from the buisness
Repeat orders
fair deals
What are 2 things the Government want from the business
Tax payments
job opportunities
What is organic growth?
they are selling more products
What’s External growth?
when they join together with another business
What is horizontal takeover
Buy another business that’s selling similar products
What’s vertical takeover
Buy a business that supplies or benefits the current business
what is employee retention
making sure employees don’t leave the business
