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Chapter 1- Enterprise

Enterprise : Almost any business or organisation can be called an enterprise but the term usually refers to the
process by which new businesses are formed and new products and services created and brought to the market.

Enterprise skills: Skills that allow an individual or organisation to…

Page 2

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Franchisor offers support and training ,

Possible pit falls.

Costs my be higher
Is one franchise gets a bad reputation they all do
Franchise agreement often restricts how the business should be run
Franchisees are required to sign non-competition clauses, agreeing not to set up competing businesses
in the franchisor's…

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Adding value: the process of increasing the worth of resources by modifying them

Value added: sales revenue minus the cost of bought in materials, components and services.

Chapter 4 -developing business plans

Business plan : a report describing the marketing strategy, operational issues and financial implications of
a business start…

Page 4

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Primary market research :

Focus groups
Test marketing

Secondary market research

Government publications
Company records
Market research organisations
Loyalty cards
The internet

Qualitative market research : The collection of information about the market based on subjective factors
such as opinions and reasons.

Quantative market…

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The importance of market segment s
Whether the business is targeting a specific group of customers
The firm's understanding of its customer base.

Chapter 6 ­ understanding markets

The market L a place where buyers and sellers come together

Local markets most common form of market for consumer goods. Individuals…

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Reaching the chosen segment with marketing
Recognizing changes in the segment with marketing
Recognizing changes in the segments interested in the products
Meeting the needs of customer s not included in the chosen segment

Market size: the volume of sales of a product or the value of sales of a…

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Private limited company: a small to medium sized business that is usually run by the family or the small
group of individuals who own it.

Features of a private limited company

A private limited company can keep its affairs reasonably private and thus the owners can
determine their own objectives…

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Structure Advantages Disadvantages
Sole trader Easy and cheap to set up Unlimited liability
Fe w legal formalities Limited collateral to support
Able to respond quickly to changes applications for loans
in circumstances Limited capital for investment and
Owner takes all the profit and expansion
hence there is good motivation Difficulties…

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Suppliers tend to be more willing more emphasis on short term
to offer credit to public limited financial results, not long term
companies. performance.

Page 10

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Chapter 8 ­ raising finance

Ordinary share capital ­ money given to a company by share folders in return for a share certificate that
gives them part of the company and entitles them to a share of the profits


Known as risk capital or equity capital. If the business…


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