Business Flashcards
What is a form of ownership?
The legal position of the business and the way it is owned.
Give 2 factors to be considered when choosing a form of ownership.
-Risk bearing
-How capital is going to be raised.
What is the difference between profit and non-profit?
-The company’s only aim is to make a profit, A company incorporated for
financial gain for its shareholders.
-The company is made for charity purposes, A non-profit company is an association
incorporated not for gain.
Name 5 forms of ownership,
Sole trader, partnership, Close Corporation, Private company, Non-Profit Company.
What is a Sole trader and give one example?
A business that is owned and managed by one person(Photographer).
What is a partnership and give one example?
A business owned by multiple people(Redbull and GoPro).
What is a Close Corporation(CC) and give one example?
A business owned by a number of 1 to 10 people(Chick-Fil-A).
What is a Private Company(Pty Ltd) and give one example?
A business with between one or more shareholders(LEGO).
What is a Non-Profit Company(NPO) and give one example?
A business made for public benefit(Human rights campaign).
What is the meaning of a business opportunity?
It is an idea that can be converted into viable, income-producing business.
Give an example of a business opportunity.
Apple wanted to make more than just laptops so they started making phones.
What is market research?
The systematic research about the marketing goods and services.
Name the 2 types of market research.
Questionnaires and Interviews
What are questionnaires?
Questionnaires are designed to collect information from people about their preferences on certain things.
What are interviews?
Responses are collected from an individual or a group and may be recorded.
What is internal market research?
It is the research conducted from within the business.
What is external market research?
It the research that is conducted from
outside the business.
What is the meaning of a SWOT analysis?
It is used to help businesses make decisions by setting out information clearly in
order to only focus on important information.
What does SWOT stand for?
Strengths Weaknesses Opportunities Threats
What is the importance of conducting a SWOT analysis?
Businesses use this tool when making important decisions.
Businesses can use this tool during any stage of development.
What is the meaning of a business plan?
A business plan is a written description of a prospective business.
What is the importance of a business plan?
A business plan helps entrepreneurs to set goals and objectives.
Name 5 components of a business plan.
Cover page, Contents page, SWOT analysis, Marketing plan, Financial plan.
What is the vision statement?
A statement which describes how the business will achieve its purpose.
