BUSS1 Bible

Everything for the AQA BUSS1 exam

HideShow resource information
Preview of BUSS1 Bible

First 226 words of the document:

BUSS 1
Entrepreneurs are people who:
Take a calculated risk
Passionate and has belief in enterprise
Good planning and leadership skills.
Can identify good opportunities
Responds to market conditions
Understands that the early days can be tough
Bad entrepreneurs:
Lazy
Take uncalculated risk
No trust or investment
Ignore risk
Rush to make big changes
Naïve
½ of all business start-ups fail.
Motives of an entrepreneur:
1. Control over working life
2. Spotted an opportunity
3. Building on experience
4. Made redundant
5. To make lots of money
6. Couldn't find a job
Why make a business in the UK?
Long term; low interest loans
Government assistance
Stable government
Wealthier people in the UK
Increased affluence
Attitudes towards enterprise:
Risk is the chance of loss or damage.
Business could fail and lose investment
Unlimited companies are liable for debt
Harder to find work or start again if the business were to fail.
Many entrepreneurs are over optimistic
Many competitors can be aggressive
Start ups fail because of inefficient customer demand; poor execution of idea and economic change.
Government support
Boosts a countries economy and productivity
Reduces taxes
Uncomplicated the tax system

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Reduces he barriers to investment for small businesses
Improves support for small business such as business link
Promotes a change in the UK's enterprise culture.
As business productivity and demand increase and therefore the costs decreases proportionally, the extra money is spent on:
Expanding the business
Lowering price
Increase the range of goods.
This increases competition and makes for a happy government.…read more

Page 3

Preview of page 3

Here's a taster:

Price of competitor
Customer loyalty
Quality
Product availability
Economic climate
Other purchases from the customer
A business can forecast cost and revenue by:
Looking at previous sales data
Market research
Loyalty programmes
Forecast cost and revenue (cash flow forecast)
Break even chart
Business success:
Profit
Customer loyalty
Reputation
Business growth
Why are budgets set?
To gain financial support
To avoid overspending
Establish priorities
To motivate staff
To assign responsibility
To improve efficiency
To measure success
Profit budget=income budget-expenditure budget
Methods of generating business ideas:
Spotting…read more

Page 4

Preview of page 4

Here's a taster:

Primary Businesses:
Farming/Mining
Factories and food producers will by their product.
Limited contact with the final customer.
Low importance of brand image but product quality.
Almost impossible to identify brands in this industry e.g. carrots.
Industry has to be where the raw materials can grow/be found.
Secondary Businesses:
Manufacture
Car dealerships, supermarkets and retail outlets would by their produce.
More contact with the consumer than the primary but less than the tertiary.…read more

Page 5

Preview of page 5

Here's a taster:

Shares are sold publicly when £50,000 has already been sold in shares.
They make lots of money by selling shares.
The business is not owned by the management therefore they are not in complete control.
At risk from hostile takeover.
Interdependence is the relationship between the 3 sectors and understanding that they all need each other to operate.
Companies add value to a product so that they can sell it for more than it cost them to buy it.…read more

Page 6

Preview of page 6

Here's a taster:

Cannot account for demand.
A company plans for:
Marketing
Objectives
Organisation
Finance
Non-Profit Organisation (NPO):
Run as a business but all of the profit is reinvested into the business.
NGOs: act away from the government to benefit those of society.
Charity: set up to support a cause that is beneficial to society.
Pressure group: established by individuals to address the interest of the group e.g. animal rights protestors.…read more

Comments

Kay

Thank you! :) **

Similar Business Studies resources:

See all Business Studies resources »See all resources »