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Flashcards in Topic 1 Deck (18)
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1

Definition of enterprise.

To spot an opportunity to start a business that people are willing to buy.

2

Definition of entrepreneur.

Someone who develops a business idea who puts it into practise.

3

Business plan.

A plan in business to achieve an objective without the business going a drift.

4

Advantages of a business plan.

- helps you guide through your first year of business.
- controls finances.
- helps applying for a bank load.
- achieve objectives.

5

Disadvantage of a business plan.

- may be poor quality due to lack of experience.
- it will need to be constantly updated due to change in circumstances.
- takes time and effort.
- new opportunity’s may be missed.

6

Advantages of sole trader.

- decide own working hours.
- you get all profits.
- no boss
- get all credit
- you make all key decisions.

7

Disadvantages of sole trader.

- no advice of other people.
- no guaranteed work or money.
- lots of pressure and responsibilities.
- unlimited liability.

8

Advantages of partnership.

- share setup costs.
- share work ‘n’ stress.
- more input into business as there are more points of view.
- more contacts.

9

Disadvantages of partnerships.

- they could disagree with a decision in the business.
- have to share profits.
- could have a unreliable partner.

10

A deed of partnership.

Lays out the rules for running a partnership business E.G.
- how profits are split.
- working week.
- if one wants to lose.
- who invested what.

11

A sleeping partner.

Someone who invests money into the business for a cut of the profits who has no part in the day to day running.

12

Public limited company. Base info.

-PLC after name.
- shareholders from the public.
- run by managing directors.

13

Public limited company. Advantages,

- good art raising capital.
- good at growth and expansion.
- big profile.
- widens shareholder base.

14

Public limited company’s, disadvantages.

- lack of ownership and control.
- vulnerable for takeovers.
- expensive to set up.
- transparency.

15

Private limited companies.

- LTD after name.
- owners called shareholders.
- usually owned bay families or friends.
- governed by two legal documents.

16

Stakeholder

Anyone who takes interest in the business or who the business effects.

17

Internal stakeholder.

Any stakeholder inside the business.E.G
- staff
- manager

18

External stakeholder.

A stakeholder who is not inside the business, E.G,
- customers
- locals.