Business Framework

  • Created by: Jordan O
  • Created on: 09-03-18 08:22
Reasons for starting a business
Challenge and personal satisfaction, be own boss, legacy of family business
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Objectives of business
Profit, growth and survival
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Skills and Qualities of an entrepreneur
Creativity, determination, confidence, communication
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What is a stakeholder?
Anyone that has an interest in a business. E.g. customer
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What is a sole trader?
An individual who owns and runs their own business
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Advantages of a sole trader
Cheap and easy to set up, you are the boss
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Disadvantages of a sole trader
Unlimited liability, few specialist skills
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What is a partnership?
Where 2 or more people run the business
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Advantages of a partnership
More specialist skills, risks and responsibilities shared
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Disadvantages of a partnership
Unlimited liability, arguments can occur between partners
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What is a private limited company?
A small company where shares do not trade on stock
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Advantages of private limited company?
Limited liability, more expertise available
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Disadvantages of private limited comapny
Can't sell shares to general public
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What is a public limited company?
A large company where there shares are on the stock exchange
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Advantages of public limited company
Limited liability, ability to raise share capital
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Disadvantages of public limited company
Expensive to set up e.g.50,000 and strict rules and regulations
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What is a franchisee?
A individual or company that holds a franchise for the sale of goods
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Advantages of franchisee
Good chance of success, franchisor provides financial support
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Disadvantages of franchisee
The business is not theirs, could be withdrawn any time
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What is a franchisor?
A company that sells the right to use a business idea
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Advantages of franchisor
Can expand quickly, no large workforce to manage
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Disadvantages of franchisor
Trade name is ruined, initial set up is very expensive
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Definition of social enterprise
It is when you do something good for society. E.g. charity
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Definition of worker co-operative
It is owned and controlled by the people who work in it
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Definition of consumer co-operative
It is owned by consumers
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Other cards in this set

Card 2

Front

Objectives of business

Back

Profit, growth and survival

Card 3

Front

Skills and Qualities of an entrepreneur

Back

Preview of the front of card 3

Card 4

Front

What is a stakeholder?

Back

Preview of the front of card 4

Card 5

Front

What is a sole trader?

Back

Preview of the front of card 5
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