Outcome 3 Flashcards
What is a business model ?
A plan that outlines how the business will run its operations tot generate a profit.
Types of business models?
Online, Bricks and mortar, Import and export, Franchise and Social enterprise.
What are the three business resources?
Natural, Capital and Labour.
What is a natural resource?
Items used by the business that come from the natural environment. For examples land, water, iron, steel and electricity.
What is a capital resource ?
The tools and machinery that are used to produce goods or perform services.
What is a Labour resource?
The people that provide their skills, effort and knowledge to the business.
What is a business location?
The physical or virtual location or lace where a business operates.
Types of business locations?
Shopping centres, homes based businesses, retail shopping strip, online presence.
What are some factors you should discuss when choosing a business location?
Visibility, Cost, Distance from suppliers, Distance from competitors.
What is an external source of finance?
The funds provided by the bank, other financial institution, government or suppliers. Generally a form of debt.
What is a mortgage?
A secured loan over a property owned by the business.
What is leasing?
Leasing is a payment for the use of equipment owned by another business.
What is equity?
The funds contributed by the owner(s) of a business to commerce and build the business.
Advantages of equity?
Equity dosent have to be repaid unless the owners eave the business
No interest
Control over the finance used.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities and Threats.
