The Business Framework

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Why do businesses start up?
They are able to earn their own money and can be their own boss. It may be also be because they have a passion or a talent.
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What are some common business aims?
Expansion, sales growth, profit maximisation, customer satisfaction, survival and being ethically and socially responsible.
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What do the SMART objectives stand for?
Specific, Measurable, Achievable, Realistic, Time Specific.
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What are some internal stakeholders?
Employees, managers, shareholders and owners.
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What are some external stakeholders?
Customers, suppliers, government, investors, banks, landowners, local community and pressure groups.
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What are some advantages of being a soletrader?
You are able to be your own boss, you get to keep all of the profit and they are relatively cheap to start up.
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What are some disadvantages of being a soletrader?
There may be a lack of skills, there is a high work load and unlimited liability means that you may lose personal possessions.
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What is a partnership?
It is a business that is owned, financed and controlled by upwards of 2-20 people.
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What are some advantages of being in a partnership?
There are more skills available, losses are shared through the deed of partnership and you can make joint decisions.
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What are some disadvantages of being in a partnership?
Arguments may occur when sharing ideas, you have to share the profit and problems may rise if your partner is being dishonest.
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What are incorporated businesses?
A form of business organisation which is separate legal entity. It has limited liability and is owned by shareholders.
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What is separate legal entity?
When the business has a separate legal identity from its owners.
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What is a private limited company?
A business that's owned by shareholders, it sells shares to friends and family only.
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What is a public limited company?
A business that's owned by shareholders and sells shares on the stock exchange to members of the public.
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What is a franchise?
Franchising is an agreement in which one business (called the franchisee) buys the right to sell the goods or services of another business (called the franchisor), and is allowed to use the franchisors name.
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What is a social enterprise?
Social enterprises are formed to provide help within social, they may provide general support (e.g. consumer rights and worker enterprises) or deal with specific issues.
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What are examples of social enterprises?
Charities, voluntary organisations and co-operatives.
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What is a co-operative?
An organisation that is owned and controlled by a group of people who have an equal say in running the business, and receive a share of any profit the business makes.
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Card 2

Front

What are some common business aims?

Back

Expansion, sales growth, profit maximisation, customer satisfaction, survival and being ethically and socially responsible.

Card 3

Front

What do the SMART objectives stand for?

Back

Preview of the front of card 3

Card 4

Front

What are some internal stakeholders?

Back

Preview of the front of card 4

Card 5

Front

What are some external stakeholders?

Back

Preview of the front of card 5
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