different types of businesses Flashcards
what is an entrepreneur?
someone who takes a calculated risk and starts a business
what are reasons for starting a business?
- making a profit
- work-life balance
- skills and interests
what does B-2-B stand for?
Business selling to business
What does B-2-C stand for?
Business selling to customers
what are advantages of being an entrepreneur?
- being your own boss
- flexible working hours
what are disadvantages of being an entrepreneur?
- risk of failure
- stress of being responsible for all decisions
what is an example of primary businesses?
fishing, farming
taking materials
what is an example of secondary?
mechanic
using the materials to create something
what is an example of tertiary?
new look, food shops
providing the products
what are the factors of production?
Land, Labour, Capital, Enterprise
what is the land factor?
where business is based
what is the labour factor?
people working in the business
what is the capital factor?
buildings/machinery needed by business
what is the enterprise factor?
skills from ideas to business
what are examples from the outside world that have impacted businesses?
- corona virus
- brexit
what is limited liability?
owners are not responsible for companys debts
what is unlimited liability?
owners are responsible for the companies debts
what is a sole trader?
a business owned by one person
what is a partnership?
a business owned by two people
what is a public limited company?
anyone can own part of the business if they buy shares
what is a private limited company?
owned by shareholders
what is a not-for-profit?
a business where their goal is to not make a profit
what is an objective?
what you will do to achieve your aim
what are the features of an effective objective?
Specific Measurable Achievable Realistic Time bound
state two reasons for a business of setting an objective.
- gives you direction
- helps achieve their aim
what is a stakeholder?
any individual or organisation who has an interest in the activities and decision making of a business
what is a shareholder?
owns the business, may work for the business and earn a share of the profit
what are two reasons an entrepreneur would want to be a sole trader?
- they earn all the profit
- they are their own boss
what are two problems of becoming a sole trader?
- no one can invest to the business to help it grow
- no one to help with the business(no new ideas)
what is a good?
actual objects, produced and consumed
what is a service?
activities provided by other people or businesses
what is a need?
goods and services we need to live
what is a want?
something you would like
