A business that uses a succesful, established business idea and name
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What is the name of the owner within franchise?
A franchisor.
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What is teh name of the buyer within a franchise?
A franchisee.
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Why do starting up businesses opt to become a franchise?
A better chance of success.
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Is it free to become a franchise, if not, why?
The franchisor charges the franchisee a fee to buy the franchise as well as taking a share of the profits, furthermore they expect the franchisee to contribute towards advertisement.
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What is a social enterprise?
Businesses wher owners are less interested in profits and more interested in social or environmental issues.
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Name the seven stakeholders of a business?
Emloyees, buyers, owners, goverment, local community, suppliers and distributors.
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Which four stakeholders are internal?
Employees, mangagers, shareholders and trade unions.
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When making key decisions and there is ore than one owner, how are decisions made?
A vote.
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How can customers influence a business?
They could decide not to buy a product.
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How can the national goverment influene a business?
They could bring in new regulations.
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How could the local goverment influence a business?
Refuse planning permission for the business to open a new premises.
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Whose interested in a business plan?
Banks, investors, grant providers, potential buyers, potential partners, employees and managers.
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What are the two main fuctions of a business plan?
To act as a basis for acquiring finance or to use as a means to measuring actual performance compared to forecasted performance.
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What does a business plan do?
Proviee vison, clarification, financila forecast documents and explain the market.
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What are the main sections of a business plan?
Previous experiences, intensions, qualifications, purpose and fiancial forecasts.
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How does business planning help?
Forces owners to carry out market research, allows owners to dicuss plan and gain financial advice from financial and legal experts, allows owners to plan for several different outcomes and provides oppertuninty for future review and monitoring.
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Why is it important to make the right coice when it comes to legal structures?
Differet structures put different resposibilities on the owners and give the owners greater or lesser access to investors or financial support. They also can determine the businesses rate of growth and whether you have limited liability or not.
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Wht are the three main types of business structures?
Sole trader, partnership and private limited company.
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What is a sole trader?
A business owned by one person, responsible for all debts, often have specialist skills in one area. There are no legal forms to fill as a sole trader and they do not have to register with the companies house.
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What are the advantages of a sole trader?
Easy to set up, freedom to make own decisions, decisions can be made quickly, profits not shared, accounts are straight forward.
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What are the disadvantages of a sole trader?
Finding start up money is hard, owners resposnsible for everything, success is on one shoulder, accidents/illness and holidays cause problems.
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What is a partnership?
Between 2 and 20 partners, a deed of partnership has to be drawn up, formed by joint owners that are legally considered equal and have unimited liability.
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What does a deed of partnership cover?
Names of partners, purpose of partnership, capital each partner has put in, how profits are devided, how decisions are made, how disputes are handled, produres fro new parners/ for partners to lea
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What are the advantages of a partnership?
Easy to raise capital, workload is hared, cover is always available, accounts are straight forward and more funds are raised hwen introducing new owners.
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What are teh disadvantages of a partnership?
Partners are liable for everything, can be conflict, not as much capital raised as ltd's, decision making is slower and all profits have to be shared.
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Other cards in this set
Card 2
Front
What is the name of the owner within franchise?
Back
A franchisor.
Card 3
Front
What is teh name of the buyer within a franchise?
Back
Card 4
Front
Why do starting up businesses opt to become a franchise?
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