Introduction to a small business Flashcards
Limited liability
Where you are the owner you you pay of all the debts.
Unlimited Liability
Where a franchise is the owner and the franchise pays off all the debts.
2 things an entrepreneur needs?
Willingness to take risks.
Commodity
Product that is sold on its price rather than brand quality.
Supply
quantity of a product a business is prepared to make and sell at a given price,
Price rises…
Quantity rises.
Demand
Shows how a consumer will react to a change in prices.
Price decreases…
Quantity demand decreases.
Equillibrium Point
where supply and demand line cross.
If demand doesn’t increase..
price will decrease
When demand decreases but supply stays the same…
price will decrease.
Demand for a product increase but the supply stays the same…
Price will increase
Stakeholder…
is a person or group who have an interest or stake in the activities in the business.
Example of stakeholders…
Pupils, teachers, governors, parents, local residents…
Bigger business have more or less stakeholders?
More
