Enterprise Flashcards
1
Q
What is a privately owned business?
A
-Owned by founders, or their families, or by a small group of investors whose shares in the company are not publicly traded
2
Q
Define crowdfunding?
A
- Internet-based scheme
- Allows people to raise money through sharing their business idea to get started, such as manufacture of a new product
- Investors lend money to projects that they believe are viable.
3
Q
What are loans and grants?
A
- Money provided by the government to start-up or continue/maintain businesses.
- Loans need to be paid back, whereas grants do not.
- An example of this would be tax relief on their investments.
- Not all businesses are sucessful
- Overall, has a high potential to boost economy and provide future employment
4
Q
What are not-for-profit organisations?
A
-They reinvest all the profits back into the business for the benefit of all involved.