Business in the real world + influences on business Flashcards
1
Q
Entrepeneurs objectives
A
- financial reasons
- business when they identify a gap in the market
- some people want more independance
- follow an interest
- dissastisfied with their current job
- a new challenge
- want to benefit others
2
Q
entrepeneurs need particular objectives
A
- hardworking and determined
- organised
- ## innovative and creative
3
Q
sectors of economy
A
- primary- produces raw materials
- secondary- manufactures goods
- tertiary-provides services
4
Q
four factors of production
A
1 land
2 labour
3 capital
4 enterprise
5
Q
sole traders-advantages
A
- easy to set up
- be your own boss
- decide what happens to the profit yourself
6
Q
sole trader-disadvantages
A
- long hours
- unlimited liabilty- you are liable if the business is liable
- unincorporated- doesnt have its own legal identity
-hard to raise money
7
Q
partnerships-advantages
A
- more owners= more ideas and greater range of skills and expertise
- share work
- more capital to grow
8
Q
partnerships-disadvantages
A
- legally responsible for all partners
- unlimited liability
- more owners more disagreements
- profits are shared between partners
9
Q
limited companies have..
A
- are incorporated
- limited liability
- owned by shareholders
10
Q
privite limited company-advantages-
A
- limited liability
- continue trading after a shareholder dies
- ## easier to get a mortgage or a loan
11
Q
privite limited company-disadvantages-
A
-more expensive
- legally obliged to publish its accounts
12
Q
public limited company-advantage
A
- much more capital can be raised
- expand and diversify
- ## have limited liability
13
Q
privite limited company-disadvantages-
A
- difficult to agree on decisions
- ## easy to buy enough shares to take over the company
14
Q
not for profit-
A
- dont try and make a profit
- generate money to cover costs
- hard to manage
15
Q
franchising meaning
A
- start up a business as a franchise of another company
