to provide goods and services and also to make profit.
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what is an entrepreneur
An entrepreneur is someone who has a good idea and is not afraid to put that idea into practise.
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qualities of an entrepreneur
Creative, Risk taking, Determined, Confidence
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what are customer needs?
products & services that we need to survive
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what are customer wants?
products & services which we would like but aren't necessary
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why do entrepreneurs make business plans?
to reduce the risk of problems and failure and to help the business succeed
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what are the main business aims?
Profit, Survival, Growth, Providing a product or service, Increasing market share
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what is a short term aim?
aims for the business in the 1st year
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what is a medium term aim?
aims for the business in years 1-5
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what is a long term aim?
aims for the business in 5+ years
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what is a sole trader?
A small business that has 1 owner.
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what is a partnership?
A small business that is owned by a group of partners.
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what is a Private Limited Company? (Ltd)
A small - medium sized business. it's owned by shareholders and sells shares privately to family or friends
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what is a Public Limited Company? (Plc)
A large business. it sells shares to the public through the London Stock Exchange.
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what is a shareholder?
An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued. It is legal for a company to have only one shareholder. Also called (in the US) stockholder
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what is Incorporation?
An incorporated business (also called a corporation) is a type of business that offers many benefits over being a sole proprietor or partnership, including liability protection and additional tax deductions. Forming a corporation also allows you rais
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what is Limited Liability?
Limited liability is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership. If a company with limited liability is sued, then the claimants are suing the company,
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what is insolvency?
when a business runs out of money and can't pay it's debts
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what is continuity?
where companies have a separate legal identity to their owners.
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what is Bankruptcy?
A business is declared bankrupt by the court when it cant pay it's debtors.
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what is a franchise?
a franchise is a business opportunity that allows the franchisee to start your business by legally using someone else's (the franchisor's) expertise, ideas, and processes.
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what is a co-operative?
A cooperative is a private business organization that is owned and controlled by the people who use its products, supplies or services.
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what is a charity?
charities are voluntary organisations that benefit the public in a particular way.
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what is the public sector?
organisations owned by the governemnt
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what is the private sector?
organisations owned by private individuals.
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what is the primary sector
businesses that collect raw materials
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what is the secondary sector
manufacturing businesses
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what is the tertiary sector
businesses that supply a service
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how can we tell if a business has grown?
its market share increases and its profits increase
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why do businesses need to grow?
to increase profits, stay ahead of competition and increase it's market share
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what is internal/organic growth?
when a business uses it's own profits to expand and grow
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what is external growth?
when a business joins with another or buys another business
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what is a merger
when 2 businesses agree to join together to form a bigger business
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what is a takeover
when one business decides to buy another.
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what is a friendly takeover
where one business agrees to be bought for a fair price
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what is a hostile takeover
where the business tries to stop being bought
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what is horizontal integration?
when a firm merges with another form that makes the same product
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what is vertical integration?
a strategy where a firm acquires business operations within the same production vertical. It can be forward or backward in nature.
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what is Lateral integration
a lateral merger is the joining together of firms with similar products that do not compete directly with each other
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what is conglomerate integration
this is when firms making completely different products merge.
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Other cards in this set
Card 2
Front
what is an entrepreneur
Back
An entrepreneur is someone who has a good idea and is not afraid to put that idea into practise.
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