Component 1 Flashcards
How many employees in a micro enterprise?
0-9
How many employees in a small Enterprise?
10-49
How many employees in a medium enterprise?
50-249
Name 3 features of a sole trader
1, A sole trader is the only owner of an enterprise
2, They have unlimited liability
3, A sole trader can employ people
Name 3 features of a partnership
1, You can have 2 to 100 partners
2, Partners sign a legal agreement called a Deed of Partnership
3, Partnerships have unlimited liability
Name 3 features of a limited private company
1, Shares are sold privately
2, Private limited companies have limited liability
3, Private limited companies have the letters ‘Ltd.’ after the business name
What is meant by limited liability?
The owners assets are separate from their private assets. This means that if the business goes bankrupt only the business can be used to pay debts
What is meant by unlimited liability
The owners assets are not separate from their private assets. This means that if the business goes bankrupt business assets AND private assets can be used to pay debts
What name is given to a business that has a physical store?
Bricks and Mortar
What name is given to a business that sells online
eCommerce
What is mCommerce?
A business that sells via mobile devices
What is the difference between a business and an enterprise?
An enterprise is a business in the early growth phase
What do you call an enterprise that exists to do good in the community
A social enterprise, eg a village store run by volunteers
What is the name of a business run by someone alongside their main job or education?
Side hustle
What is an LLP?
A limited liability partnership where a partnership has registered legally to have limited liability
Name the 3 business sectors
Primary, secondary and tertiary
Give an example from each business sector
Primary eg Farming
Secondary eg Manufacturing
Tertiary eg retail
What is the difference between B2B and B2C enterprises
B2B is ‘Business to Business’ meaning a business that sells to other businesses
B2C is ‘Business to Customer’ meaning a business that sells to individual customers
What is an Aim?
A target for the enterprise to achieve
Why have aims?
To provide a challenge
To provide a focus
To check your progress
Name 7 types of aim
Profit, Break-even, Survival, Environment, Ethics, Expand, Maximise Sales (sell, sell, sell)
Give 2 examples of environmental aims
To use 100% renewable energy by 2030
To reduce waste by 50% this year
How could an ethical aim relate to peoples pay?
To pay people a fair wage
How might a company achieve an aim of expanding?
More sales, more stores, more customers or more products
What is meant by the term ‘an industry’?
A group of similar businesses based on the main product or service
What industry might a cafe operate in?
Food or Hospitality industry
What industry might a cinema operate in?
The entertainment industry
What industry might a gym operate in?
The sport or fitness industry
Name 4 reasons an entrepreneur might start their own business
1, Be your own boss
2, Flexibility
3, Pursue an interest
4, Pursue a social benefit
What name is given to someone who starts their own business (spell it correctly)
Entrepreneur
Name 6 types of changes that might happen in a market
1, Changes in social trends eg social media
2, Changes on tastes
3, Technological advantages
4, Economic Changes
5, Changes in social priorities eg environment
6, Changes in competition
What type of change can be seen in lots of people across the country finding they are doing low paid jobs?
Economic changes
What type of change can be seen in 5G coverage accessible across most areas of the UK
Technological change
List 3 ways an enterprise could attract new customers?
Eg discount vouchers, BOGOF, Loyalty Cards, sales or competition
Why does an entrepreneur need to manage its Human Resources well?
Human Resources are staff. Staff should be motivated. Motivated staff give better customer service and stay longer in the business
Why does an entrepreneur a need to manage its financial resources well?
Financial resources include cash to pay bills and buy stock and profit to investment in growing the business (including advertising)
How does a business calculate profit?
Sales revenue - Costs
