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Business Revision notes:

3.1 Entrepreneurs

Characteristics of an entrepreneur:

· Contributes original ideas

· Has selfconfidence and passion about their venture

· Ability to work independently and develop ideas

· Committed and willing to make personal sacrifices to benefit business

· Creative thinker and shows initiative

· Has vision of…

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organise the capital, the land and the labour in the correct proportions to run the business

Each person who contribute the factors of production has to be rewarded:

Factor of production Contributed by Rewarded by
Land Landlords Rent
Labour Employees Wages and salaries
Capital Capitalists Interest
Enterprise Entrepreneurs Profit…

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***The sole trader is expected to have expertise in sales, purchasing, advertising,
accounting, window dressing, deliveries and stocktaking. This means they have to work long
hours. If the sole trader is ill or on holidays there is often noone to call on.

Partnership: most frequently found in professional businesses such…

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3) Raise own capital
4) Difficulty in borrowing money
5) Possibility of conflict between partners
6) Lack of continuity

Limited companies

Shares and shareholders

Shares bought on stock exchange to raise capital, which makes them shareholders.
Company therefore able to raise money.

There are two types of shares:

Ordinary shares:…

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Amount of capital with which they are starting

A liability clause states:

That members liability is limited

An association clause which states:

A declaration by at least two people that they wish to form the company.

Articles of Association:


Voting rights of shareholders
Method of election of directors

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2. Public limited company (PLC)

Private limited company:

shares can't be bought by any members of the public (mainly just within families)
End of year shareholders are entitled to a share of profits which is paid in direct
proportion to number of shares each one holds.
Private limited companies advantage…

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7. Specialisation and division of labour.


1. Owners have no real say on how it is run.
2. Formation of PLC is lengthy and a legal procedure
3. Financial information must be published for the information of the general public
4. In some companies top management and employees feel…

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The franchiser loses:

1. Management of daytoday running of the shop. If local service is poor, the reputation
of the franchise is damaged.

Other forms of business ownership: Public sector

We have already looked at ownership in the private sector we are now going to take a closer
look at…

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There are examples where it would be wasteful to have several organisations
duplicating services.

Aims of public corporations:

Mainly to give a service and nowadays are expected to make some profit or at least break


The government has overall control of the corporation and appoints a government minister…

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Street cleaning
Health and environmental issues
Parks and recreational activities
Local housing
Parking areas
Maintenance of local roads

In addition they support:

The arts
Economic development

Main sources of finance

1. Government grant

The government gives capital grant to the local authority to assist it with essential
building work.…




too long. need to do it is smaller quantities



Brilliant! The whole CCEA course condensed!




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