mixed topic practice Flashcards
what are 4 entrepreneurial characteristics
- determination
- risk-taking
- creativity
-confidence
define enterprise
seeing an opportunity to provide a product or service that people are willing to buy
define entrepreneur
a person who takes the risk of starting and running a business
tell me 3 risks of being an entrepreneur
- financial
- health
- strained relationships
tell me 3 rewards of being an entrepreneur
- financial
- independence
- self-satisfaction
what are the 2 purposes of a business plan
- to reduce the risk of starting a business
- to help a business succeed
define a business plan
details how a business aims to achieve its objectives
what are the 7 contents of a business plan
- aims and objectives
- target market
- competition
- the idea
- people running it
- market research
- finance
define finance
the money needed to start the business
state 5 advantages of a sole trader
- easy to set up
- little finance required
- full control
- keep all the profits
- financial information is private
state 5 disadvantages of a sole trader
- unlimited liability
- business stops if ill or go on holiday
- long working hours
- shortage of capital
- skills shortage
state 5 advantages of a partnership
- more capital available
- easy to step up
- more skills available
- shared workload
- financial information is private
state 5 disadvantages of a partnership
- shared profit
- unlimited liability
- shortage of capital
- slower decision making
- no continuity
state 4 advantages of a private limited company
- limited liability
- continuity
- can raise capital more easily
- control over one sale
state 4 disadvantages of a private limited company
- financial information is available to the public
- complex and expensive to set up
- sale of shares is restricted
- dividends to be paid
