Revision From Notes Flashcards
Explain risk-taker
Takes risks relating to money
Calculated risks when making decisions
Reward is business growth
Explain creativity
Comes up with original ideas
Ideas to stay ahead of comp
Reward is to have creative product that maximises sales
Explain self-confidence
Have a passion in their belief
Able to deal with people to make sales
Be successful
Explain determined
Need to overcome failures
Work very hard and extra hours
Go above and beyond for success
Why government encourages enterprise
Creates employment, less money to benefits.
Brings money into local economy, helps public services.
Disadvantages of being an entrepreneur
Long hours
Personal stress
Lose money
2 advantages of a private limited company
Debts are limited to company and not linked to owners
Controlled by directors and managers and profits distributed to owners
Private limited company disadvantage
No financial privacy
Set-up costs
Limited capital
2 advantages of a PLC
Raising capital, can sell shares to the public
Limited liability
Economies of scale
Disadvantages of a PLC
Shareholders are owners
Directors make decisions
Lack of privacy
Set-up costs (>£50,000)
Explain interest of director as a stakeholder
They need the business to do well to get dividends
Directors can also be shareholders
Explain the interest of employees as a stakeholder
Consistent paychecks
Job security
Good salary
Career prospects which leads to more money
Explain the interest of producers as a stakeholder
Want to continue supplying raw materials leads to high levels of sales, revenue and profit
Explain the interest of consumers as a stakeholder
Want the business to succeed to increase choice, leading to value for money, quality products, good customer service and sales service
Impact of competition on price
Reduce price to encourage sales.
Stability of price, costs low for consumers
Impact of competition on product
Leads to new product development, need to invest in areas of value, which leads to more sales
Disadvantage of M-Business
Needs robust measures to prevent hacking, by law have to handle customers data appropriately, leading to more costs
2 ways social media could be used to promote a business
Advertising, leads to visibility leads to sales
Promotion, leads to public engagement, sales
