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Business Studies > Business activity > Flashcards

Business activity Flashcards

1
Q

What are the characteristics of an entrepreneur

A

Creativity
risk-taking
determination
confidence

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2
Q

Rewards for risk-taking

A

Financial
independence
self-satisfaction
changing customer habits

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3
Q

Drawbacks for risk taking

A

Financial
health
strained relationships

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4
Q

Purpose of business planning

A

Reduce risk
help a business succeed

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5
Q

Contents of a business plan

A

Business idea
people running the business
market research
finance
objectives of the business
target market
competitors

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6
Q

Role of a business plan

A

Identify market
help obtain finance
identify resources that a business needs to operate
achieve aims and objectives

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7
Q

What is a sole trader

A

Owned by one person

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8
Q

Advantages of a sole trader

A

Easy to set up
requires little finance
private financial information
owner has complete control 

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9
Q

Disadvantages of a sole trader

A

Unlimited liability
skills shortage
long hours
continuity

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10
Q

What is a partnership

A

A business owned by two or more people

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11
Q

Advantages of a partnership

A

Easier to raise capital as there are multiple owners 
Shared workload
more skills
private financial information

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12
Q

Disadvantages of a partnership

A

Shared profit
unlimited liability 

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13
Q

Deed of partnership

A

Document stating how the business operates which includes the roles of each partner and how much capital each partner has contributed

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14
Q

Sleeping partner 

A

They provide capital for the business but take no part in running the business

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15
Q

Limited liability partnerships

A

The liability for the debts of a partnership is limited to the amount of money they put into the business

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16
Q

Private limited companies

A

Shareholders are chosen by owners and can’t be sold to the general public

17
Q

Advantages of private limited companies

A

Limited liability
continuity

18
Q

Disadvantages of private limited companies

A

Dividends
sale of shares is restricted

19
Q

Public limited companies

A

Shares can be brought by public on the stock exchange

20
Q

Advantages of public limited companies

A

Easy to raise large amounts of capital
Limited liability

21
Q

Disadvantages of public limited companies

A

Possibility of takeover
public financial information

22
Q

Potential aims and objectives for a business

A

Profit
growth
market share
survival

23
Q

Aims and objectives during the start-up

A

Survival
establish name

24
Q

Aims and objectives as a business involves

A

Profit
growth
market share
becoming an LTD or plc 

25
Q

Stakeholders

A

People who have an interest in a business

26
Q

What are examples of stakeholders

A

Owners
employees
customers
community
suppliers

27
Q

What are internal stakeholders 

A

People who work in the business

28
Q

What are external stakeholders

A

People outside of the business

29
Q

Why do the government have an interest in a business

A

They affect:
changing taxation levels
they provide grants to businesses

30
Q

What are the two methods of growth

A

Organic growth
external growth 

31
Q

What is organic growth

A

Increasing the sales of products and services

32
Q

Methods of organic growth

A

Increasing output
gaining new customers
developing new products
increasing market share

33
Q

Methods of external growth

A

Merger
takeover

34
Q

Merger

A

Two businesses joined together

35
Q

Takeover

A

A business buys control of another business

36
Q

Horizontal take over

A

Taking over a business in the same market

37
Q

Vertical take over

A

Takeover of a supplier or who a business supplied to 

Business Studies (7 decks)

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