Starting A Business

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name 3 characteristics of an entrepreneur?
Personal organisation, good communication, general math skills, I.C.T skills, team player, negotiation/leadership skills, motivating others, decision making, optimistic and confident.
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name 3 reasons for starting a business?
Interests/hobby, to make money, self satisfaction, to be your own boss, provide a service for others, need a job.
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what are the two types of products?
goods - physical items and services - intangible
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what is the primary sector?
1st stage of production, uses raw materials e.g farms, fishing fleet
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what is the secondary sector?
2nd stage of production, uses primary resources and converts them into products e.g manufacturers and printers
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what is the tertiary sector?
provide services e.g schools, estate agents and delivery firms
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what is a private sector organisation?
they are owned by individuals who aim to make profit
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what is a public sector organisations?
they are owned by the goverment, they are free service, non profit making organisations. they aim to benefit particular cause that they were set up to help
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name 3 sources of business ideas?
own idea, expansion of an existing idea, based on an interest/hobby, gap in the market, a franchise
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when does a franchise occur?
occurs when a firm sells the right to use its products and name to another firm in return for an initial fee and a percentage of the revenue earned.
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name a few advantages of a franchise?
the idea already exists so its less risk, the brand will be already well established - easier to get customers, franchisor provides support, easier to set up.
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name a few disadvantages of a franchise?
if there is a problem with a franchise, it may ruin the reputation of your franchise, may be disputes in balance of power between the franchisor and the franchisee, cant make big business decisions
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what is a niche market?
a small part of a bigger market e.g shoes made of rubber instead of leather
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what is an advantage of a niche market?
they are small - so very few competitors
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what is the equation for market share?
sales of a product / total market sales x 100
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name a few purposes of aims and objectives
provides a focus for everything an entrepreneur does, enables entrepreneurs to look back and see weather they have accomplished their aims, will be clear on exactly what the business is trying to acheive, provides a target, motivates employees
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give examples of objectives
providing a good product, earning a profit, customer satisfaction, to survive, to be ethical
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how do stakeholders influence a business?
through negotiation, direct action, refusal to cooperate and voting
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what is the purpose of a business plan?
it states what a business is trying to achieve over the next few years and how it intends to do this
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what are the sections within a business?
background info on the founders and investors, an analysis of the market and the firms position within it, firms objectives, why its better than competitors, businesses financial position.
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what are the reasons for business planning?
important when setting up a business,in order to anticipate any problems, shows possible investors
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what are the difficulties of business planning?
uncertainty- hard to predict future sales accurately, lack of experience - people starting a business may not have the skills to plan ahead effectively
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how do you reduce the risks of business planning?
research the market thoroughly, talk to experts and consultants, plan for a variety of possible outcomes, regularly review and update the plan
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what are the advantages of a sole trader?
be your own boss, make all decisions, easy to set up, keep all profits and make quick decisions
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what are the disadvantages of a sole trader?
unlimited liability, may lack finance, heavy workload, may not have all the skills required, difficult to take time off
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what is included in the deed of partnership?
how to divide profits, how decisions are going to be made, how to value the business if someone leaves, how to decide whether more people can join
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what is the purpose of the deed of partnership?
to avoid disputes
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what is the advantage of the deed of partnership?
share workload
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what is the disadvantage of a deed of partnership?
you may disagree with other people
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what factors influence start up locations?
type of business ,availability of locations, competitors, availability to raw materials, transport, technology, cost
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what does the memorandum of association set out?
the name of the company, the overall purpose of the company, where the company is registered, a general statement of the firms activities
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what does the articles of association set out?
the voting rights of the shareholders, how profits are distributed, how directors are elected
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when does a public limited company occur?
when a private limited company is floated on the stock market, allowing any members of the public to buy shares in the company
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what are the advantages of a public limited company?
limited liability, raise capital through selling shares, increase in status
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what are the disadvantages of a public limited company?
someone may buy enough shares to take over, lose control
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what are private limited companys?
they are owned by shareholders, shares tend to family members and you have to be invited
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what are the advantages of a private limited company?
limited liability, better status, continues after death of the founders
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what are the disadvantages of a private limited company?
various legal procedures, lose control, likely competitors, occuring trends in the market.
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Other cards in this set

Card 2

Front

name 3 reasons for starting a business?

Back

Interests/hobby, to make money, self satisfaction, to be your own boss, provide a service for others, need a job.

Card 3

Front

what are the two types of products?

Back

Preview of the front of card 3

Card 4

Front

what is the primary sector?

Back

Preview of the front of card 4

Card 5

Front

what is the secondary sector?

Back

Preview of the front of card 5
View more cards

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