Business Studies -Starting a Business

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Define social enterprise
an activity in a business that achieves a reward for society once a product is sold
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Example of social enterprise
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Define Gap in the market
Business opportunity with a new idea or adds onto existing products
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Define a franchise
the right to use a name and logo of an existing firm (business)
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Advantages of a franchise
less risky as its already a known business and easy to set up
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Disadvantages of franchise
Have to give a % of the revenue to the owner and franchisee doesn't have control over decision making
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3 key business objectives when starting a business
survive first year, growth in sales and making profit by hitting target
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Define business aim
stated target for the future
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Define business objective
a defined target to achieve over a certain period of time
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How do you calculate profit
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Define growth
a increase in revenue, market share and profit
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Whats a stakeholder
someone who has an interest in a business e.g.- customers, employees and managers
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Define a business plan
a statement showing how a business sets out to achieve its aims and objectives
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Define sole trader
A business ran by only one person
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Advantages of a sole trader
easy to set up, and freedom to make decisions
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Disadvantages of a sole trader
long hours and unlimited liability
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Define partnership
two or more (max 20) involved in a business and they share risks, costs and responsibilities
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Advantages of a partnership
someone to consult decisions with
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Disadvantages of a partnership
shared responsibilities causing disputes to arise, and unlimited liability
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define limited liability
shareholders can only lose the amount of investment that they put in if the business fails
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define unlimited liability
owners are responsible for all business debts
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state three factors which affect a businesses choice of location
costs, infrastructure and the market
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Card 2


Example of social enterprise



Card 3


Define Gap in the market


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Card 4


Define a franchise


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Card 5


Advantages of a franchise


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