Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

GCSE business flashcards > Role of business and entrepreneurship > Flashcards

Role of business and entrepreneurship Flashcards

1
Q

Give three purposes of a business enterprise

A

Spotting and opportunity (eg: gap in the market)
Developing an idea (designing a product or service/planning production)
Satisfying customer needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define entrepreneur

A

A person who takes the risk of starting and running a business enterprise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What to do in an analysis question

A

Apply answer to the case study

Explain why

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Give four characteristics of an entrepreneur

A

Determination
Creativity
Confidence
Risk-taker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a non-financial risk of running a business?

A

the strain of running a business can cause mental and physical illness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Give examples of non-financial rewards of running a business

A

Independence
Self-satisfaction
Making a difference (e.g: improving the lives of customers)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Purposes of a business plan

A

Reduce risk of business failure

Be as successful as possible (e.g by deciding how to market its products as effectively as possible)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Give the steps involved in developing a business idea

A

Identifying what the business will produce and sell and
the resources needed
Stating aims and objectives
Identifying who will be involved and the human resources required (e.g number of employees and the
skills and experience they should have)
Identifying target market
Identify Price, Product, Place, Promotion to appeal to said market
Identifying market resources needed
Identify how much finance is needed and for what
Identify how much money to be raised
Identify competitors and decide how to stand out amongst them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Business plan definition

A

A simple plan which sets out details or the product/service being sold and how it will be financed/ marketed, also includes details of market research findings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When might a business plan be written?

A

Before a business starts or when planning a major change to the way a business operates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Objectives have to be SMART, what does this mean

A

Specific
Measurable (stating how to measure the success of the plan, eg by using sales or profit)
Achievable
Realistic
Timely (including a deadline for achieving targets)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define Sole trader

A

A business owned by one person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Partnership

A

A business owned by between 2 to 20 partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a Private limited company?

A

Usually a smaller business that can sell shares to invited people only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a Public limited company?

A

A business that can sell shares to anyone who wants to buy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Give some advantages of sole-trader

A

Easy to set up
Owner has full control
No information about profits must be published

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Give some disadvantages of sole-trader

A

The business stops when owner dies
Raising finance is limited because there is only one person to contribute to it and the business cannot sell shares to raise finance
Unlimited liability
Large workload and long hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Give some advantages of partnership

A

Only needs a deed of partnership to set up
Easy for owners to control as partners (usually) make decisions between themselves
No information about profits must be published
Work is shared between partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Give some disadvantages of partnership

A

The partners may disagree on decisions
Profits have to be shared between owners
New deed of partnership needed when an owner leaves or joins
Cannot sell shares to raise finance and only a few partners to invest in business
Unlimited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which businesses are incorporated?

A

Private limited companies/Public limited companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Which businesses are NOT incorporated?

A

Sole traders/Partnerships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What does incorporated mean

A

Having limited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Give some advantages of Private limited company

A

Shareholders can restrict who buys shares so it’s easy for the owners to control
The business continues even if shareholders sell their shares or die
Raising finance is not limited as new shareholders can invest and banks are willing to lend
Limited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Give some disadvantages of Private limited company

A

Requires legal documents to set up which take time to produce
The public can see information about the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Give some advantages of Public limited company

A

The business continues even if shareholders sell their shares or die
Raising finance is not limited as new shareholders can invest and banks are willing to lend
Limited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Give some disadvantages of Public limited company

A

Requires legal documents to set up which take time to produce
More difficult for owners to control as anybody can buy shares
The public can see information about the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is a deed of partnership?

A

A document stating who owns the business, how much money each partner has invested and their role in the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is a share?

A

Part ownership of a business

29
Q

What does it mean to have unlimited liability?

A

To be responsible for all the debts of the business

30
Q

What does it mean to have limited liability?

A

The owners of the business can only lose the money they invested into it if it fails

31
Q

Give an advantage and disadvantage of a limited liability business, less obvious one

A

A: Helps businesses raise finance as investors will not lose everything so they are more willing to invest
D: Can be complicate because of many legal documents to complete

32
Q

What are Assets?

A

Things owned by the business, e.g stock, buildings vehicles and even reputation

33
Q

Give an advantage and disadvantage of unlimited liability companies, less obvious ones

A

A: Easier to set up
D: Seen as risky to lend to

34
Q

Define established business

A

A business that has been trading for some time

35
Q

State the four main business objectives

A

Survival (businesses may survive for a short period without making profit))
Profit
Growth (e.g increasing sales or market share)
Providing a service (some owners want the satisfaction of giving a good service to customers/ improves reputation, attracts new customers)

36
Q

Why might objectives change a business evolves?

A

They are at different stages of development
Their owners have different motivations
They are influenced by different market conditions
They are experiencing different economic conditions

37
Q

What does the term evolving mean in business?

A

The way a business changes and develops over time

38
Q

When might a business set a survival objective?

A

When it has just started so that it can become established and secure and make profit in the longer term
During a downturn of economic activity or when a market is very competitive

39
Q

When might a business set a profit objective?

A

When it is established and wants to reinvest to expand and grow

40
Q

When might a business set a growth objective?

A

When it is established and wants to gain more power in the market, increase profit and reduce competition

41
Q

When might a business set a providing service objective?

A

When it strives to improve reputation and attract new customers

42
Q

Give some examples of external stakeholders

A

Local community, suppliers, customers and government

43
Q

Give some examples of internal stakeholders

A

Business owners, employees

44
Q

Define stakeholder

A

Someone who has an interest in a business

45
Q

What is an owner’s role in a business?

A

Provide finance to start up and expand a business

To manage of run a business

46
Q

What is an employee’s role in a business?

A

Produce goods and services

47
Q

What do employees want from a business

A

Satisfaction of having a job and earning income
To be treated well by employers
Enjoyment of social aspects of working with collegues

48
Q

What is a customer’s role in a business?

A

To buy goods and services

49
Q

What do customers want from a business?

A

Enjoy benefits provided by goods and services

Affordable prices

50
Q

What is a supplier’s role in a business?

A

Sell goods for resale or sell manufacture material to make the goods

51
Q

What do suppliers want from a business?

A

To make sales and earn profit

52
Q

What is a government’s role in a business?

A

Help businesses, workers and communities

Encourage businesses

53
Q

Why do governments want to encourage businesses?

A

Because it leads to high employment and benefits economy

Because it increases taxes payed to the government

54
Q

What is a local community’s role in a business?

A

Provide workers

Monitor and influence business activities

55
Q

What does a local community want from a business?

A

A local area which is prosperous

56
Q

What are benefits of business activity for stakeholders?

A

Profits, jobs, incomes, quality goods and services, sales, taxes and prosperity

57
Q

What are problems of business activity of stakeholders?

A

Financial losses, redundancy, poor goods and services, late or missed payments, bad publicity and negative impacts on the local environment and community

58
Q

What are problems owners may experience from their business?

A

May lose money invested if business fails

59
Q

What are benefits owners may experience from their business?

A

They will own profit if business is successful

60
Q

What are benefits employees may experience regarding a business

A

Able to earn income from a business

61
Q

What are problems employees may experience from a business?

A

May lose job if business fails
Their job may be replaced by automation such as robots
Employment conditions may be unfair, leading to stress

62
Q

What are problems suppliers may experience from a business?

A

May lose money if the business does not pay for goods supplied
Cash flow problems in the business may mean payment to suppliers is delayed

63
Q

What are benefits suppliers may experience from a business?

A

They will earn profit from selling goods

64
Q

What are problems customers may experience from a business?

A

May be sold poor quality goods and services
May be overcharged
May experience poor customer service

65
Q

What are benefits customers may experience from a business?

A

To obtain the right products and services at a reasonable price

66
Q

What are the benefits a government may experience from a business?

A

Tax revenue from the owners, workers, suppliers and customers of a business

67
Q

What are problems a government may experience from a business?

A

Government may be criticised if they don’t step in too stop very large companies from failing
Business failure on a large scale may damage the economy

68
Q

What are benefits the local community may experience from a business?

A

They can earn money from jobs there

Benefit from the goods and services and convenience provided from a new business in their local area

69
Q

What are problems a local community may experience from a business?

A

Can be affected by pollution and road congestion caused by business
Business may also take lots of space and take customers from small local businesses

GCSE business flashcards (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions