Starting An Enterprise (Starting a Business)

Question 1

What are the functions of a business?

Answer 1

Finance
Production
Human resources
Marketing

Question 2

What is an entrepreneur?

Answer 2

Someone who starts up their own business

E.g. As a sole or a partnership

Question 3

Traits of an entrepreneur?

Answer 3

RISK TAKER
creative 
determined 
Passionate 
Motivated

Question 4

Why are businesses set up?

Answer 4

Businesses are set up so that people can help their community with:
Employment
So they can be their own boss
To get more money
Because there is a demand in that industry

Question 5

What are the different types of businesses(industries)?

Answer 5

Sole trader
Partnership
LTD-private limited company (in the private sector)
PLC-public limited company (in the private sector)
Franchise-already owned but you set up and look after it

Question 6

Where do business ideas come from?

Answer 6

Business ideas come from a need in the market (whether its because your fed up of the corporate world or want to be your own boss and run you future)
You ask yourself whats bugging you? Looking into it

Question 7

How do businesses look for gaps in the market?

Answer 7

They look for whats missing from other businesses
they see what need to be filled
they find something new to provide

Question 8

What is a franchise?

Answer 8

method for expanding a business

In an already owned business but you mange that store for them

Question 9

What are the advantages and disadvantages of a franchise?

Answer 9

Advantages:

• The risk of failure is reduced
• You benefit from any advertising or promotions
• There will already be a market share so no need for market testing

Disadvantages:

• Costs can be higher than you expect
• The initial cost of buying the franchise can be high
• The franchise contract usually has restriction on how you run the business

Question 10

What are the advantages and disadvantages of a franchise?

Answer 10

Advantages:

• The risk of failure is reduced
• You benefit from any advertising or promotions
• There will already be a market share so no need for market testing

Disadvantages:

• Costs can be higher than you expect
• The initial cost of buying the franchise can be high
• The franchise contract usually has restriction on how you run the business

Question 11

What are the advantages and disadvantages of a franchise?

Answer 11

Advantages:

• The risk of failure is reduced
• You benefit from any advertising or promotions
• There will already be a market share so no need for market testing

Disadvantages:

• Costs can be higher than you expect
• The initial cost of buying the franchise can be high
• The franchise contract usually has restriction on how you run the business