section 1 - business basics

Question 1

Entrepreneurs

Answer 1

Identify new business opportunities, and then taking advantages of them. entrepreneurs take advantage of business opportunities.

Question 2

Enterprise

Answer 2

Means taking risks. the entrepreneur will need to gather some money to start the business and they hope the business will make enough profit to pay any money back thats been borrowed.

Question 3

Entrepreneurs Qualitys

Answer 3

The ability to think ahead
determination
ability to plan carefully
leadership skills and power of persuasion
ability to learn from mistakes
networking skills

Question 4

Sole Traders

Answer 4

most small businesses are sole traders.

you dont need to do anything except start trading. e.g. plumbers, hairdressers, newsagents.

Question 5

Advantages of sole traders

Answer 5

they’re easy to set up and you get to be your own boss and you get to decide whats happens with the profit.

Question 6

Disadvantages of sole traders

Answer 6

Long hours of work will be needed.

you have unlimited liability so if in debt money and personal assets will be taken

Question 7

Partnerships

Answer 7

Are like two or more sole traders. they are not common but jobs include: solicitors and accountants.

Question 8

Advantages And Disadvantages Of Partnerships

Answer 8

Advantages: more owners more ideas and more people to share the work
- more owners more money can be put in the business
Disadvantages; unlimited liability
more disagreements
each partner is legally responsible for what all the other partners do

Question 9

Private Limited Companies

Answer 9

shares can only be sold if all the shareholders agree. private limited companies have LTD after their name.

Question 10

Public Limited Companies

Answer 10

public means that shares in the company are traded on stock exchange and so can be bought or sold by anyone. public limited companies have PLC after their name.

Question 11

Internal Stakeholders

Answer 11

are inside the firm. the owners are the most important stakeholders. they make a profit if the business is successful