Why start a Business?

  • Created by: Amina2408
  • Created on: 27-04-18 12:07
What is the keyword that is a skill in wanting to run and start a business?
This is called Enterprise.
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What does the term Entrepreneur mean?
This refers to an individual who sets up their own business.
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Why do Entrepreneur's take calculated risks (difficult risk tasking decisions) to start up a business.
1) Making a profit 2) The satisfaction that comes with being independent and creating a successful business 3) The ability to make a difference to the community, public or those around you.
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Why does a business need their own name and product?
They need a name so that their customers or people who may be interested are aware iof what the business is called and who it's run by. It alsoneeds either a product or service so that people have something to purchase or become interested in.
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What risks and rewards may a company/business have or likely to happen?
A risk is when the company takes a chance in order for something good to happen for the business. For example, profit is a reward for risk taking. A risk may be expansion or selling a completely different product. Another risk - partnership.
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What may happen or have to happen if a business suffers damaging losses.
The business may need to close down, either to bring themselves back up or close down for good. This is because the business would be suffering failure and may not have enough to stand anymore.
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Why do people need a business plan? What may a business plan involve?
They need a business plan to give them more of an idea of what they are going to do and how they are going to do it. Therefore, in this plan they may also consider objectives to support them if they may go towards the possibility of failure.
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How do business plans help to reassure stakeholders such as banks?
This is because it helps to reduce the risk of problems and issues that may occur in the future with these stakeholders. For example, if the business is heading towards failure this would affect stakeholders. Therefore, a business plan would help.
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How do fashion trends affect a business and the way it operates?
If the fashion trend changes this will then change your target audience's or customer's view of fashion and clothing. This may even be watches and other products that you might sell. Therefore, you need to consider these trends to keep up to date.
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What does the term monopoly refer to?
This revolves around a business which maybe the only supplier in the market or is covering most of the market for example, 25%.
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How can competition make markets work better?
Price - companies may reduce their prices in order for more customers to purchase their products (cheaper). Product range - introducing more products to attract the customers. Customer service - this would improve (more friendly)
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Define Product Differentiation.
This is when a business makes a product that will stand out from other businesses products in order to increase their success in competition. For example, they might do this by improving the price range, quality or service of their product.
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What are the methods of creating a successful product differentiation?
Creating a strong brand image. Making sure to have a unique selling point. Considering the competitive factors.
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Other cards in this set

Card 2

Front

What does the term Entrepreneur mean?

Back

This refers to an individual who sets up their own business.

Card 3

Front

Why do Entrepreneur's take calculated risks (difficult risk tasking decisions) to start up a business.

Back

Preview of the front of card 3

Card 4

Front

Why does a business need their own name and product?

Back

Preview of the front of card 4

Card 5

Front

What risks and rewards may a company/business have or likely to happen?

Back

Preview of the front of card 5
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