Starting A Business Flashcards
Begging of business
Give two reasons why someone might start a business
Financial reasons and personal reasons
What is a social entrepreneur
a person who establishes an enterprise with the aim of solving social problems or effecting social change.
What does a sole trader lose and gain if it becomes a partnership
More ideas are brought to the table , however lots of disagreements
What is a franchise
When some companies give other firms the right to sell their products in return for a fee.
“limited liability companies have their own identity” what does this mean?
Any money that the company owns is in it’s own bank account not the owners. If the company can’t pay back money only the company is in trouble not the owner.
2 benefits and 2 disadvantages of franchising for the franchisee?
Has the rights to sell an established product. Franchisor might provide training. However must follow franchisors rules and can only sell the products of the franchise.
List seven types of business aims?
Survival . Growth . Market share . Environmental sustainability . Ethical consideration . Customer satisfaction.
Difference between aims and objectives?
Objectives more short-term ( like stepping stones on the way to an aim)
What is a stake holder?
Anyone that is affected by a business.
Two internal and external stake holders?
Owners and employees. Customers and suppliers.
Purpose of a business plan?
An outline of what a new business will do and how it aims to do it.
What must be included in a business plan?
Personal details. Mission statement. Objectives. Pruduct description. Production details. Staffing requirements. Finance.
What things do you need to think about when choosing a business location.
Location of raw material. Transport. Communication links. Labour supply.
