Unit 1 Flashcards
What is business activity?
What the business does to provide its customers with a product or service.
What is enterprise?
Spotting an opportunity to provide a product or service people are willing to buy. Eg: on a rainy day put umbrellas at the front of the shop.
What is initiative?
To use judgement and make your own decisions without being told what to do.
What is an entrepreneur?
An individual who ,is willing to take risks, and has the skills and knowledge to set up their own business.
Name 3 risks of entrepreneurship
They include financial, strained relationships and ill health.
Name 3 rewards of entrepreneurship
They include financial, self-satisfaction and independence.
Name characteristics of an entrepreur
Hard working, shows initiative, spots opportunities, never give up, and take risks.
What is a business plan?
It sets out how the owners/managers are going to achieve their objectives, without a plan the business is more likely to drift.
What is a sole trader?
A sole trader is a business that is owned and controlled by one person. This doesn’t stop it from employing people.
Continuity is a risk of being a sole trader. What is continuity?
Continuity is when if the owner can’t sell the business or passes away the business will cease to exist.
What is a partnership.
A partnership is a business owned and controlled by a minimum of 2 people.
What is a Sleeping/limited partner?
A sleeping/limited partner is a person who invest into the business and owns a share, but doesn’t take part in the running of the business or making decisions.
