Business Start Up Flashcards
1
Q
Organisational Options
A
- Sole trader
- Partnership
- Private Limited Company
2
Q
Production Options
A
- Job
- Batch
- Mass
3
Q
Finance Options
A
- Short
- Medium
- Long
4
Q
Challenges of setting up a Business
A
- Long term finance
- Working capital
- Production method
- Creating USP
- Location
5
Q
Sole Trader definition
A
•One person
•Owner &Company are the same
E.g. Farmer
6
Q
Sole Trader Benefits & Challenges
A
Benefits:
•Quick Easy to set up
•Keep profits
Challenges:
•Unlimited liability
•Expansion difficult
7
Q
UNLIMITED LIABILITY
A
If business goes bankrupt sole trader is responsible for paying debts
8
Q
Partnership definition
A
- 2-20 people
- Jointly owned
- Solicitors, Doctors
9
Q
Partnership Benefits & Challenges
A
Benefits:
•More capital
•Losses shared
Challenges:
•Disagreements
•Profits shared
10
Q
DEED OF PARTNERSHIP
A
- Profits shared
* Each partner is responsible for if BUSINESS CLOSES, SALARIES OF PARTNERS, PARTNERS WITHDRAWING MONEY
11
Q
Private Limited Company definition
A
- 1-149 shareholders
- Limited liability
- Directors run business
- Ltd follows name
- Separate legal entity
12
Q
Job Production
A
- High quality, produced to order
- Unique product
- No stock holding
- Highly skilled labour
- Payment in advance
- Product expensive
13
Q
Batch production
A
- Producing large amount in one go
- Products are the same
- Avg quality
- Semi skilled labour
- Cheaper products
- Economies of scale
14
Q
Mass Production
A
- Constant high demand
- Large quantities, standard quality
- Huge economies of scale
- Costly machinery
- Unskilled labour
- Marketing essential
- Storage facilities essential
15
Q
Impact Job->Batch
A
- Investment
- USP Lost
- Effective stock control
- Reduced prices
- Lower profit margins
