Unit 1 Flashcards
What are the benefits of being a sole trader
All money to yourself, Full control, easy to set up, no conflict
What are the benefits of being in a partnership
More skills, less risk, more capital, quick, easier
How does a business choose a location
Transport, Customers in area, Accessibility, competitors, customer type, socio economics, price
What is in a business plan
Salaries, People, Places, Insurance, Taxes, Costs, Data, Machines, Tools…
Give an example of two stake holders that have opposing interests
Buyers want cheap prices so they don’t spend as much, managers want high prices so they earn more.
What is unlimited liability
The owner and the business are the same entity
What are the four factors of production
Land, Labour, Capital, Enterprise
What are the 4 business functions
Marketing, Production, Finance and HR
What is a social enterprise
businesses that put the interests of people and planet ahead of shareholder gain.
List the reasons for why people start up their own businesses?
Reasons might include personal satisfaction, challenge, being your own boss and independence
What is a niche
A business niche is a market segment where certain products and services are in demand.
What is market mapping
Market mapping is the process of using a graph to plot competitors and their products to understand competitor behaviour and spot a gap in the market
What is a franchise
A franchise is a business that gives the right to another person or business to sell goods or services using its name.
What is a positive of franchising
Increased brand awareness and brings in more customers
What is a negative of franchising
high costs and royalty payments, strict product rules, lack of support from uninterested franchisors, lack of flexibility in where to locate and how to trade,
