Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Unit 1 Starting A Business > Flashcards

Unit 1 Starting A Business Flashcards

0
Q

What is a shareholder?

A

A shareholder is an owner of a company each shareholder owns a share of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

What is a company?

A

A company is a business that has its own legal identity it can own items owe money,sue and be sued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a stakeholder

A

A stakeholder is an individual or organisation that affects all is affected by the activities of a business shareholders stakeholders but so are suppliers employees the distributors the government and the community

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Name three features of a Private Limited Company?

A

It’s owned by shareholders usually are in the family

It cannot advertise its shares to the general public if shares are to be sold they must be done privately

It includes LTD after its name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are some advantages of setting up as a private limited company?

A

Limited liability
Better status in the eye of some customers
The company will continue after the death of the founder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is limited liability?

A

The shareholders personal possessions are safe and can help start up a business to gain access to funding from investors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the disadvantages of setting up of a private limited company

A

Accounts must be checked phone individual accountant which will create additional cost
Various legal procedure need to be completed such as registering the company which take a little time and some money
Have to disclose information on sales and profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why is location important?

A

Because it affects the cost for example the amount to be paid in rent or to buy a premises varies according to location

sales location may affect whether or not the business gets customers

Image for some products where they are produced can have a important impact on their image

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

State the main factors influencing The start-up location?

A

Availability of raw material - some business rely on raw material
Transport link-Business aiming to export might need to be near an airport anything or a port sothey can transport goods easily

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What factors might influence the location of a new coffee shop?

A

Competitors
Transport link
Raw material

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What factors might influence the location of a new computer game developer?

A

Technology
Availability and cost of labour
Competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why might getting the best location be more difficult for a start business than establish one?

A

Start-up businesses often have limited funds available and this restricts their options

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How could you reduce the risk when having a business plan

A

Research the market
Plan for a variety of possible outcomes
Keep the plan up to date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Name A typical ObjectIve for starting up a business?

A

Survival for the first year
Earning a profit
Customer satisfaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Name some examples of an stakeholder

A

The local community eg recycling
The buyers
Employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Name the 3 types of business

A

Primary sector - raw materials such as coal and oil
Seconary sector - turning primary resource into products eg: manufactors
Tertiary sector - provide service eg, schools and hospitals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the 2 type of market research ?

A

Primary ; gathering and analysing marketing data that has not been collected before
Seconary ; involve gathering and analysing marketing data that has been collected in the past

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the advantages of being a sole trader

A

It’s quick and easy to set up
you make all the decision for yourself
You keep all the profits yourself so if the business is successful you don’t have to share the award of other people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the advantages of buying a franchisee?

A

The brand name will be established so you would get more customers for less risk of the business failing

19
Q

What are the advantages of buying a franchisee?

A

The franchisor may provide support training all existing methods the brand uses

20
Q

What are the advantages of partnership compared to sole trader?

A

Because there’s more than one person in a partnership they should be more start up money for the business

21
Q

What are the difficulties of business planning

A

The risk of something possibly going wrong all the uncertainty as we cannot be sure the plan will go right

22
Q

What are the disadvantages of being a sole trader

A

If the business goes wonky and have unlimited liability
It could be quite stressful making the decisions yourself
Heavy workload

23
Q

What Are the disadvantages of buying a franchisee?

A

The business would only be able to sell the franchisors products and not your own personal product

The franchisee will also have to go bother franchisors rules so will be limited on freedom of the business

24
Q

What are the disadvantages of partnership

A

Unlimited liability

25
Q

What are the disadvantages of partnership

A

Different partners may have different ideas which may cause arguments

26
Q

What is a deed of partnership

A

It is an agreement between partners that set out the walls of the partnership such as how profits will be divided

27
Q

What is a entrepreneur ?

A

Someone who is willing to take the risk involved in strarting a business.

28
Q

What is a franchise ?

A

This occurs when there is a right to sell another firm product or business idea

29
Q

What is a partnership

A

A partnership is formed when two or more people set up in a business together

30
Q

What is a stakeholder?

A

Individual or organisation that are affected by and affect the activities of a business

31
Q

What is an objective for a business?

A

An objective is all in a is a target that is set for the business to achieve

32
Q

What is market research?

A

The process of gathering , analysing documents and presenting data relevant to marketing

33
Q

What should be included in a business plan?

A

The product descriptions and also the financial sectors

34
Q

Why is a business plan convenient?

A

Because it helps see any future problem and it will help guide to create a successful business

35
Q

Why is a good business plan not 100% guarantee to success?

A

Because it depends on the health of the economy and the actions of competitors

36
Q

Why is having an objective for the business important?

A

It help investors to understand direct the direction in which the business is heading towards also

it helps decision-making and establishing the priorities
forexample if the objective is to stay local they should be focused on potential customers nearby

37
Q

Why would someone start a business ?

A

Be own boss,make their own decision
Provide a service eg service
Financial reason

38
Q

What is a sole trader?

A

A sole trader describes any business that is owned and controlled by one person, although they may employ workers,

39
Q

Give me an example of a sole trader

A

Newsagent

40
Q

What is a business objective ?

A

Is a target set for a business to achieve

41
Q

Why is setting a business objective important ?

A

Helps make and establish priories

Helps investors to understand the direction in which the business is heading

Provides target …. So everyone can compare actual results with planned results

42
Q

Name at least 3 typical objectives for a start up business ?

A

Survival
Being ethnical
Customer satisfaction

43
Q

What is a business plan?

A

A business plan is a document setting out on what the state of the business is presently & what it intends to achieve & how

44
Q

What is deed of partnership?

A

An agreement between partners that sets out the rules of the partnership

45
Q

What can be included in a deed of partnership?

A

How to divide the profits
How decisions are to be made
How the partnership will be valued if someone was to leave

46
Q

What is the purpose of the deed of partnership ?

A

Is to avoid disputes.

Business (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions