Unit One - Business Activity

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Unit One
Business Activity
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Entrepreneur
A person who takes the risk of starting and running a business enterprise
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Spotting an oppurtunity
The ability to see the need for a particular product or service that customers need
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Enterprising characteristics
The features of an entrepreneur, which includes being determined, creative and having the ability to take risks
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Business plan
A simple plan which sets out details on the product or service being sold, where the finance is to come from to start the business, how the product or service is to be marketed, and the market research to show there is need for what is being sold
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Finance
A business term used instead of money. The finance needed to start a business is the money that is required to do so.
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Success
Success for a business can take many forms, including making a profit, surviving and providing good customer service to customers
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Markets
Markets are where businesses sell its goods and services
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Resources
The things a business needs to make it work, including finance [money], staff and materials.
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Operate
Operate is a term used to explain how a business works [operates]
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Aims + Objectives
The things that a business is trying to achieve, such as grow larger, or make more profit
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Limited Liability
Where the responsibility for the debts of a business is limited to the amount invested by a share holder. A feature of private and public limited companies.
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Unlimited Liability
Where the responsibility for all the debts of a business rests with the owners of the businesses. A feature of sole traders and partnerships.
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Sole Trader
A business owned by one person
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Patnership
A business owned by between 2 and 20 partners.
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Private Limited Company [Ltd]
Often, but not always, a smaller business. Owned by at least two shareholders. Shares cannot be sold to the general public. Has Ltd after its name.
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Public Limited Company [plc]
A large business, where shares can be sold to the general public enabling vast sums of money to be raised to develop the company. Has plc after its name.
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Deed of partnership
A document setting out the operations of the partnership, including amount of capital to be invested and how profits will be shared
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Capital
The money raised to start or develop a business.
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Sleeping Partner
A partner who invests in a partnership but has no part in the running of the business
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Limitied Liability Partnerships
Part partnerships, part limited company. Owners are members, not partners. They have limited liability and have to make their finances available to the public.
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Shareholders
The owners of a private or public limited company.
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Dividend
The money paid to a shareholder from the profits of a limited company. This is the reward for the shareholder taking a risk by investing money into the company.
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Satisficing
Making just enough profit to provide the business owner with a decent living. More common in smaller businesses.
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Market Share
The share of the total market for a product or service and is shown as a percentage.
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Business Objectives
What the business aims to achieve, and includes survival, profit, growth and providing a service.
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Profit
Revenue minus costs (revenue-costs)
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Survival
When a business just manages to keep going.
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Growth
Where a business becomes larger, for example by making more products or opening more places where goods and services are sold.
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Providing a service
Where a business makes sure that the needs of the customer are being met.
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Stakeholders
Groups or individuals who havean interest in a business.
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Internal Stakeholders
The business owners and people who works in the business.
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External Stakeholders
The local community, suppliers, customers and government.
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Stakeholder Group
Owners, employees, customers, suppliers, government, local community.
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Organic Growth
The growth of a business internally by increasing sales. Sales can be increased by increasing output, gaining new customers, developing new products or increasing market shares.
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Merger
Where two or more businesses agree to join together.
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External Growth
Growth of a business by takeover or merger.
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Takeover
Where a business takes control of another business.
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Horizontal Growth
A merger or takeover where two businesses are involved in similiar operation. eg. Two electrical producers or two bakeries.
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Backwards Vertical Growth
When a business merges with, or takes over a business that suppliers it with goods or services. eg. The supplier of their raw materials.
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Forwards Vertical Growth
When a business merges with or takes over a business that it supplies goods or services to. eg. A farm taking over a grocery store.
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Diversification.
When a business merges with or takes over another business which there is no connecton to.
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Other cards in this set

Card 2

Front

A person who takes the risk of starting and running a business enterprise

Back

Entrepreneur

Card 3

Front

The ability to see the need for a particular product or service that customers need

Back

Preview of the back of card 3

Card 4

Front

The features of an entrepreneur, which includes being determined, creative and having the ability to take risks

Back

Preview of the back of card 4

Card 5

Front

A simple plan which sets out details on the product or service being sold, where the finance is to come from to start the business, how the product or service is to be marketed, and the market research to show there is need for what is being sold

Back

Preview of the back of card 5
View more cards

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