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28 Cards in this Set
- Front
- Back
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what is a sole trader? |
a business that is owned and controlled by 1 person |
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name some advantages of a sole trader |
- easy to set up -freedom to make decisions
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name some disadvantages of a sole trader |
-high responsibility -long hours -unlimited liability |
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what is a partnership? |
businesses owners by 2 or more people tends to be 2-20 owners |
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name some advantages of partnerships |
- shared experience -shared responsibility - specialised workers |
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name some disadvantages of partnerships |
- shared profits - arguments can occur on disagreements - unlimited liability |
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what is a limited company? |
a company with its own legal identity. they can sue people for copying their products |
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what is a shareholder? |
someone who own a share of the company e.g 10% |
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what are the 2 main types of limited company’s? |
a private limited company a public limited company |
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who is a company controlled by? |
managers |
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what is a business that sells the right to use a business idea? |
a franchisor |
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who is a franchise bought by? |
a franchisee |
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who has legal responsibility to settle debts in a company with unlimited liability? |
the owners |
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what is a business aim or objective? |
a statement of what a business is trying to achieve over the next 12 months |
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what is a business aim or objective? |
a statement of what a business is trying to achieve over the next 12 months |
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give some examples of a business aim or objective |
survival increased profit growth increasing market share |
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what is the most common business aim or objective to set as soon as you start a new business? |
to survive |
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what is the most common business aim or objective to set as soon as you start a new business? |
to survive |
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what does SMART stand for when setting an aim or objective? |
specific measurable agreed realistic timed |
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why might a business objective or aim change over time? |
once an aim is successfully completed, the company might set a new one to achieve e.g business has managed to survive over 12 months therefore is now trying to expand and bring more profit in |
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why might it be important and vital to have a business objective or aim? |
to motivate workers and to help the company be successful |
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who normally decides on business objectives? |
owners |
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who are stake holders? |
any group interested in the activities of the business |
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who are stake holders? |
any group interested in the activities of the business |
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give an example of a stakeholder consideration |
when some profit is sacrificed to pay stay an annual bonus |
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who are stake holders? |
any group interested in the activities of the business |
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give an example of a stakeholder consideration |
when some profit is sacrificed to pay stay an annual bonus |
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in the long term, what do all private sector firms aim to do? |
make a profit |
