POB paper 3 Flashcards
what is a business organisation?
a business organization is a group formed to conduct commerical activities
what is a sole trader
a sole trader is a one person’s business, sometimes called a proprietor.
functions of a sole trader
-it is easy and inexpensive to become a sole trader.
-the owner usually finances sole traders
what are the advantages of a sole trader
adv-simplicity-setting up and running a sole trader business is straightforward.
-full work you have complete control over decision-making quick adjustments and personal management.
what are the disadvantages of a sole trader
-workload-running a business alone can be overwhelming leading to long hours and potential burnout.
-challenges in growth: expanding the business may be more difficult without a partner or additional investments.
concept map for business organizations(private sector
sole trader
partnership
cooperation
companies
franchise
concept map for business organizations (public sector)
local and municipal authorise
government department
what is partnership
defined as a legal agreement between two and 20 individuals
functions of a business
Businesses buy goods and services for their use and resale
Businesses create jobs by hiring employees
what is a firm
a firm may consist of anything from one person to several thousand person
what is a plant
a plant is a producer floor where the workers make goods
what is a cooperative
a cooperative is a business organisation that is owned and operated by its members
what is an ordinary partnership
also known as a general partnership
what is entrepreneurship
entrepreneurship pertains to an individual who brings together the factors of production
four reasons to start a business
for financial independence
to have a success of the enterprise
owing their own business
