Introduction To Business Flashcards
Evaluate the importance and impact of entrepreneurial activity for stakeholders
Entrepreneurs affect various stakeholders, such as:
• Customers – Benefit from innovative and improved products.
• Employees – Gain employment and career opportunities.
• Investors – Expect returns on their investments.
• Suppliers – Secure long-term business relationships.
• Government – Receives taxes and benefits from economic growth.
Evaluation: Entrepreneurial activity drives economic growth, but can also lead to ethical concerns, such as poor working conditions or environmental harm
Explain the legal structure of various business forms including sole trader, partnership,private limited company and public limited company
• Sole Trader – Owned by one person, unlimited liability.
• Partnership – Owned by two or more people, shared responsibility.
• Limited Liability Partnership (LLP) – Like a partnership but with limited liability.
• Private Limited Company (Ltd) – Shares owned privately, limited liability.
• Public Limited Company (PLC) – Shares traded publicly on the stock exchange.
