Business Mock

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  • Created by: Pippa_cn
  • Created on: 25-11-16 20:15
What is a Sole Trader?
Smallest type of business that is owned by one person
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An advantage of Sole traders?
Easy to set up, get to be your own boss or you alone get to decide what happens to the profits
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A disadvantage of a Sole Trader?
Long hour, less holidays, Unlimited liability or unincorporated
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What is a Partnership?
Business owned by 2 - 20 partners. Partners have equal say and draw up a deed of partnership before starting work
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An advantage of Partnerships?
More owners = more ideas, workload is shared, morse owners = more capitals, less working hours
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A disadvantage of Partnerships?
Legally responsible for each other, Unlimited liability, unincorporated, disagreements
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What is a Private Limited Company (Ltd)?
A business which shares can only be sold if all shareholders agree, often family or friends
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An advantage of Ltd?
Limited liability, Easy to keep control, incorporated
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A disadvantage of Ltd?
More expensive to set up: legal paperwork, Legally obliged to publish accounts
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What is a Public Limited Company (PLC)?
A business which it's shares are sold on the Stockmarket for anyone to buy
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An advantage of PLC?
More capital and helps company expand
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A disadvantage of PLC?
Each shareholder has little say, Subject to hostile takeover, had to use profits for different things
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Examples of the Four Business ownerships?
PLC: Coca cola Partnership: doctors Sole trader: west Fryers Ltd:
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What does Unlimited Liability mean?
When an owner can lose their personal belongings to pay off debts
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What does Unincorporated mean?
Business and owner are not legally seprate
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What does incorporated mean?
Business and owner are legally separate
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What does limited Liability mean?
Owner Can only lose what they have put into the business
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What is a Stakeholder?
Anyone who has an interest in the business
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What are the two types of stakeholders?
Internal and External
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Give the Examples of internal stakeholders
Directors, Employees and Owners
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Give the Examples of external stakeholders
Government, Local community, customers and suppliers
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What is a franchise?
A certain brand sold by a franchisor to a franchisee. The franchisee buys the rights to use the franchisor's brand and sell their products
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What are the benefits of a franchise?
Buying the rights to sell an established product, less risk of failure, Banks are more willing to lend money, marketing, promotions, training and management are provided by the franchisor
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Name a problem for the franchisee?
Only sell products of the franchise and has to abide by the franchisors rules
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Name a problem for the franchisor?
Little control over how the franchisee shells the products - could result in a bed reputation
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What does the franchisee pay the franchisor?
Royalties
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What is a Risk?
the likelyhood of failure
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What is a Reward?
the potential benefits of taking a risk
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what does an entrepreneur have to do/consider when setting up a business?
gather resources, borrow from the bank, make profit to pay back borrowed money and take calculated risks
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Give examples of risks
New products, selling shares, changing business ownership or going into new field of work
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Give examples of Functional areas
Marketing, Finance, Customer service, Human resources, Research and development and operations
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What does the marketing department do?
promotes the business
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What does the Finance department do?
keeps track of money coming in and going out of the business
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What does the Customer service department do?
Provides a service that deals with customer queries
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What does the HR department do?
They are in charge of everyone person in the workplace - hiring and firing, human rights
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What does the research and development department do?
Looks for gaps in the market and finds out what customers want
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What does the operations department do?
Takes in deliveries and prices the products
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What is does the Primary Sector do?
extracts raw materials
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What is does the secondary Sector do?
Manufactures the goods
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What is does the tertiary Sector do?
Sells the goods to consumers
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What is an objective?
What a business wants to achieve
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what is the most important objective for a business?
To make a profit in order to survive
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What will happen is a business does not make a profit?
It will go bankrupt and will close down
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what is an Aim?
An aim is little goals businesses set in order to reach their objectives
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What is a Non profit organisation?
A business that's aim is to help people rather than make a profit
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ho is a NPO run by?
Trustees
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Why might someone start a business?
Financial or personal reasons or they want to help people
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Other cards in this set

Card 2

Front

An advantage of Sole traders?

Back

Easy to set up, get to be your own boss or you alone get to decide what happens to the profits

Card 3

Front

A disadvantage of a Sole Trader?

Back

Preview of the front of card 3

Card 4

Front

What is a Partnership?

Back

Preview of the front of card 4

Card 5

Front

An advantage of Partnerships?

Back

Preview of the front of card 5
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Comments

Jodie.Hirons

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really helpful as going to do my mocks soon. xoxo

littleover

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i've got mock in 20 hours

tammyclifff

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ive got a OCR exam monday so ;P

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