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)
