business in the real world test Flashcards
what is unlimited liability? [2]
the full responsibility for any owed money (debts) -
may have to sell personal possessions to pay off debts
give 2 benefits of being a sole trader[2]
quick to set up
make all decisions
keeps all profit
choice of work hours
choice of products & services to sell
give 2 disadvantages of being a sole trader [2]
workload/long hours
no cover for illness or holidays
unlimited liability
more difficult to raise finance
limited skill set
give 2 benefits of being in a partnership [2]
easy & low cost set up
shared desicions & control
shared skills & workload
cover for illness & holidays
shared risk - borrowing power is greater
give 2 disadvantages of being in a partnership [2]
shared profit
disagreement between skateholders
slower desicions
unlimited liability
what is an enterpreneurship? [1]
taking riskes to develop a business idea
what is social enterprise? [1]
a not-for-profit business set up to help society
what is an enterpreneur? [1]
someone willing to take risks involved in starting a anew business
what is a service?[1]
an act that a business person carries out in exchange for money
factors of production
list the 4 factors of production [4]
land
labour
capital
enterprise
factors of production
what is land in terms of business? give an example. [2]
somewhere to produce goods
e.g. farm
factors of production
what is labour in terms of business? give an example. [2]
people to work in the business
e.g. farm workers
factors of production
what is capital in terms of business? [1]
the buildings and machinery needed by the business
factors of production
what is enterprise in terms of business? [1]
the motivation from owners to start a business
what are 3 ways in which business size can impact objectives? [3]
-growth
-market share
-innovation
-financial performance
-employee development
-customer service
-social responsibility
-flexibility & adaptability
