MOCK PAPER REVISION (9 MARK QUESTION) Flashcards
What is a Franchise?
A franchise business is a business in which the owners, or “franchisors”, sell the rights to their business logo, name, and model to third party retail outlets, owned by independent, third party operators, called “franchisees”
What is a Sole Trader?
An independent person who creates a business alone with no help needed.
Name one advantage of a Franchise?
You know it will be a successful business, since its a global business already.
Name one Disadvantage of a Franchise?
Expensive to start.
Name one Advantage of a Sole Trader?
A lot of profit
Name one Disadvantage of a Sole Trader?
Risk of Failing and wasting money.
How do you improve Break Even Point?
Increase Fixed Costs.
One advantage of E-Commerce?
Don’t have to struggle to find the perfect location.
One Disadvantage of E-Commerce?
No guarantee of product quality.
What is a business plan?
A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them.
Why are business plans used?
To provide the owners a overview of what steps they have to take to achieve their goals.
