Unit 1 Flashcards
What are the characteristics of an entrepreneur
Optimistic
Determined
Risk takers
Motivated
What is niche marketing
Where a business targets a small, specific segment of a market
What is mass marketing
When a business targets their product to an entire market
What are aims
The long term intentions of a business
What are objectives
Strategies to help a business achieve their aims
What must all objectives be
S-specific M-measurable A-agreed R-realistic T-timed
What is a sole trader
Anyone who sets up a business on their own
What are the disadvantages of establishing a business as a sole trader
Slow growth Lack of finance Less ideas Long working hours Unlimited liability
What are the benefits of establishing a business as a sole trader
Self employed
No split in profits
What is meant by unlimited liability
The bank views the individual(s) and the business as one meaning all debts the business has the individual(s) has/have
What is a partnership
A business between 2-20 people starting up together
What are the benefits of establishing a business in a partnership
Debt is shared
More ideas
More internal finance
What are the disadvantages of establishing a business as a partnership
Potential disagreements
Shared profits
Shared decisions
What is the legal document needed to be drafted when forming a partnership
The deed of partnership
What is the private sector
The business is owned by individuals
