Business Activity Flashcards
What are four characteristics of an entrepreneur?
Determination
Risk taking
Creativity
Confidence
What are two risks of becoming an entrepreneur?
- can lose savings to pay off debts if business doesn’t succeed
- can cause mental and physical illness from the stress of running a business
What are two rewards of becoming an entrepreneur?
- potential to make lots of money
* independence, and self satisfaction
What should be included on a business plan?
- Aims and Objectives
- market research
- competitors
- finance
What are the four types of business ownership?
- sole trader
- partnership
- private limited company
- public limited company
What is a partnership?
A company owned from between 2-20 people
What is a sole trader?
A business owned by one person
What is a private limited company?
A business that can only sell shares to invited people only.
What is a public limited company?
A company which can sell shares to anyone one who wants to buy.
What is a deed of partnership?
A document stating who has majority control of the partnership, how much money each partner has invested, and what their role is.
What is limited liability?
Where the owner of a business can only lose money they invested if the business fails
What is unlimited liability?
Where the owner of a business is responsible to pay for all debts if a business fails
What are four business objectives?
- growth
- profit
- survival
- providing a service
What are the six stakeholders?
- owners
- employees
- customers
- suppliers
- government
- local community
What is backward vertical growth?
When a business merges/takes over a business that supplies goods/services
