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13 Cards in this Set
- Front
- Back
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What is a stakeholder? |
A party that has an interest in a business and can either affect or be affected by the business |
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What can stakholders be?? |
Internal or external. Internal are those who has interest in the business as a result of a direct relationship eg. Through employment and investment
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What are external stakeholderz? |
Those who do not work for the company but are affected or affect the business by actions in some way
Eg. Suppliers, government and public groups |
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What is the problem with having numerous stakeholders? |
Their different viewpoints may not be aligned and can thus cause conflict eg. keeping labor costs to a minumim to increase profit for shareholders can cause conflict with the emloyees (also stakeholders) |
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What are 4 qaulities of successful entepreneurs? |
- extremely dedicated and passionate about what they do - not afraid to risk - confident (knows their s and w) - able to communicate and organize |
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What are the different forms of ownership an entrepreneur must choose from once they have a business idea? (6) |
1. Sole proprietorship / sole trader 2. Partnership 3. Close Corporation (CC) 4. Non profit company 5. Profit company 6. Co-operatives |
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What are: 1. Capital requirements? 2. Management and control |
Capital Req: The way capital is raised to start the business Management: how the businesss is managed and controlled |
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What are formation procedures and tax implications? |
Formation: legal requirements involved in starting a business Tax: who is responsible for paying tax and how is it calculated? |
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What is legal personality and continuity of existence? |
Legal personality: legal right of person(s) to enter contracts for ownership of a property to be sued or sue Continuity: how change of ownership affects the continue running of the business
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What is liability for debts and profit sharing? |
Liability: how the debt is shared between owners Profit sharing: how the profit is divided between owners |
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What does it mean if a business has legal persona? |
It operates as a seperate legal entity to the owners |
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What is limited and unlimited liability? |
Limited: opposite of unlimited (will lose) Unlimited: when a business is responsible for its debts and owner will not lose belongings if unable to pay debts |
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What is capital? |
Capital: money used to establish a business Own capital: capital is contributed by owners of business Borrowed capital: money is obtained from financial institutions and paid back by interest |
