Business Studies - Starting a Business

HideShow resource information
  • Created by: Dkang
  • Created on: 20-02-16 12:58
What is an entrepreneur?
Someone who is wiling to take the risks involved with starting a business as they believe the rewards are worth the risks and cost
1 of 30
Why would someone want to start their own business?
To become their own boss, they need a job, to provide a service or product to benefit other people
2 of 30
What is a social enterprise?
A business set up to help society rather than make a profit
3 of 30
What is a gap in the market?
A business opportunity that is new or adds something different to the existing product/service
4 of 30
What is a franchise?
The legal right to use the name and logo of an existing firm and sell the same products
5 of 30
What are the benefits of buying a franchise?
Brand is already well established, franchisor will provide support and training, reduces risk of setting up a business.
6 of 30
What are the disadvantages of buying a franchise?
If one franchise gains a bad reputation it will affect all the other franchisees, disputes over the balance of power between the franchisor and franchisee
7 of 30
What is a business objective?
A clearly defined target a business aims to achieve
8 of 30
What are some typical objectives for a business?
to survive, provide a good product, earn a profit, good customer satisfaction or being ethical
9 of 30
What is the equation for market share?
sales of product/total market sales x 100
10 of 30
What is the difference between public and private sector organisations?
Public are owned by the government and private are owned by individuals
11 of 30
What are stakeholders?
Anyone that is affected by or affect the activities of a business e.g. employees, community and suppliers
12 of 30
How do you work out the profit?
Profit = revenue - cost
13 of 30
What is a business plan?
States what a business does at present and what it wants to
14 of 30
What would be included in a business plan?
Information on founders, objectives, how it will compete, financial position
15 of 30
What are some difficulties within business planning?
It's not easy to predict what will happen in the future market and those starting a business may lack experience so not have the skills to plan ahead well
16 of 30
What is the meaning of unlimited liability?
When there is no limit to the amount of money owners may have to pay
17 of 30
What is a sole trader?
Form of business owned and managed by one person
18 of 30
What are some advantages of being a sole trader?
It's quick as you don't need to register with government, fast decision making and consultation isn't needed and you keep all profits
19 of 30
What are some disadvantages of being a sole trader?
Unlimited liability, if sole trader dies business ends and it can be stressful to make all decisions
20 of 30
What is a partnership?
When two or more people set up a business
21 of 30
What is a deed of partnership?
A legal document that sets out the rules of the partnership, such as how profit will be divided and how decisions are made
22 of 30
What are some advantage of a partnership?
More funds are available, less stressful, more skills to draw upon
23 of 30
What are some disadvantages of a partnership?
Disputes, slower decision making, rewards are divided,unlimited liability
24 of 30
What is a company?
A form of business that is created when a memorandum of association and articles of association are signed
25 of 30
What is a private limited company?
A company that is owned by shareholders and can only sell shares privately not to the general public
26 of 30
What are some advantages of private limited companies?
Limited liability, continues after death of founders, has a better status in customer eyes
27 of 30
What are some disadvantages of private limited companies?
Have to register, must disclose information of sales and profits
28 of 30
Why is location important?
It can affect the total costs, the amount of sales and the image given to the business
29 of 30
What are the 8 factors that influence where a business locates?
Type of business, availability of location, competitors, availability of raw materials, availability/cost of labour, transport links,technology and costs
30 of 30

Other cards in this set

Card 2

Front

Why would someone want to start their own business?

Back

To become their own boss, they need a job, to provide a service or product to benefit other people

Card 3

Front

What is a social enterprise?

Back

Preview of the front of card 3

Card 4

Front

What is a gap in the market?

Back

Preview of the front of card 4

Card 5

Front

What is a franchise?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Starting a business resources »