Section 1.5 Flashcards
define entrepreneur
an individual who takes risks to create or start a new business idea
define enterprise and some skills it includes
the skills required to make a new idea work
some skills may include:
-risk taking
-showing initiative
-making things happen
what is the role of an entrepreneur
-creating a new business idea
-running and expanding a business
-intrapreneurship
define business
any organisation that makes goods or provides services
overtrading
refers to the situation where a business expands at a rate that cant be sustained by its capital base
mission statement
communicates the coorporate aima of the firm to the stakeholders
unlimited liability
owner is personally resposnible for the depts of the business (may have to sell personal things in order to repay debts)- sole trader and partnerships
limited liability
Legal duty to pay the debts of business stays within business itself (owners and shareholders only loos what they put in)- ltd and plcs
sole trader
when individuals set up a business on there own (unlimited liability)
partnership
a business made up og between 2-20 owners
private limited company
owned by shareholders and the owners can place restrictions on who shares are sold to in the future (Ltd)
public limited company
owned by shareholders but unlike ltds restrictions cant be placed on the sale of these shares as the shares of these companies are sold on the stock exchange (plc)
business objectives
medium to long term goals established to coordinate the business that help the business meer overall aim/objective
franchise
occurs when one business (franchisor) sells the right to use and sell its products/ services to another business/ person (franchisor)
franchisor
sells the right to the product in return for and initial fee and a percentage of the franchisees turnover
franchisee
recieves the right to the name and the systems used by the franchisor- may incude access to materials and training
social enterprise
type of business that claims “to do good” but good for whom is never stated
life style business
businesses are creted based on the needs of the entrepreneur
innovation
coming up with new ideas and bringing them to the market
geographical mapping
plotting on a map the locations of all exisiting businesses in your market, in order to show where competitors are
market map
grid plotting where each exisiting brand sits on scales based on 2 important features of a market
intrapreneur
personal characteristics of an entrepreneur but works within a large company
oppurtunity cost
the cost of missing out on the next best alternative when making a decision
