Business Flashcards
what is a sole trader?
a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.
What is an advantage of being a soletrader?
they have full control over what happens with the business, it is easy to close/shut down, recieve all profit the business makes, they dont have to make their information public.
what is a disadvantage of being a soletrader?
its alot harder to raise finance, have unlimited liability dso they are responsible of all debts of the business. can have a higher tax burden.
what are customer needs?
customer needs are what the customer wants and needs, they change with different customers as they need different things.
types of customer needs…
convenience, choice, price, quality
what does S.M.A.R.T stand for with business objectives?
Specific, measurable, achievable, realistic, timed.
what is a business objective?
a business objective is a goal a business targets to do in a certain time.
what is the risk of unlimited liability?
if the business fails then the owner of the business is responsible for all debts of it.
what is a reward of setting up a business?
one reward of setting a business up is that you can earn profit and independence.
when is technology used in mcdonalds
on the tills, the card orderer.
what does tangible mean?
tangible means you can touch it.
what does intangible mean?
that you cannot touch it.
what is a franchise?
a franchise is when somebody sets up a business with another business plan and idea, for example setting up a new KFC in a good location.
whats a disadvantage of a franchise?
it can cost alot to setup.
