Business Unit 1

Front 1

Define what Entrepreneurs are?

Back 1

THEY ARE PEOPLE WHO BRING THE NEW BUSINESSES INTO THE MARKET. AND OFTEN RECEIVE GRANTS TO HELP THEM TO SET UP THE BUSINESS.

Front 2

WHY ARE ENTREPRENEURS IMPORTANT FOR THE BUSINESS WORLD?

Back 2

CREATE JOBS AND OPPORTUNITIES

ARE ABLE TO SPOT GAP IN THE MARKET

Front 3

DISADVANTAGES OF AN ENTREPRENEURS?

Back 3

DIFFICULT TO GET A FUND DUE TO LACK OF EXPERIENCE

DUE TO AGE MAY NOT BE TAKEN SERIOUSLY

Front 4

DEFINE WHAT A FRANCHISE IS?

Back 4

IT IS A PERSON WHO PAYS TO BE PART OF A SUCCESSFUL AND ESTABLISHED BUSINESS SUCH AS MCDONALD'S.

Front 5

ADVANTAGES OF A FRANCHISE?

Back 5

GOOD WAY TO START AN ESTABLISHES BUSINESS

MANY CUSTOMERS WILL BE ABLE TO RECOGNIZE THE BRAND EASILY

DUE TO THE BRAND BEING SUCCESSFUL BANKS ARE MORE LIKELY TO GIVE BANK LOAN AND WILL HAVE TO PAY LITTLE INTEREST.

Front 6

DISADVANTAGES OF A FRANCHISE?

Back 6

MOT MUCH FREEDOM IN DECISION MAKING

THE FRANCHISER TAKES A CUT OF THE INCOME SO VERY HARD TO MAKE LARGE PROFIT

VERY EXPENSIVE

Front 7

WHAT IS A BUSINESS PLAN?

Back 7

IS A PLAN WHICH SETS OUT HOW A BUSINESS IDEA WILL BE FINANCED MARKETED AND PUT INTO PRACTICE.

Front 8

WHY IS IT GOOD TO MAKE BUSINESS PLAN?

Back 8

GIVES DIRECTION

HELPS MAKE DECISIONS ABOUT THE RESOURCES THAT ARE NEEDED

HELPS TO MEASURES SUCCESS

Front 9

WHAT SHOULD A GOOD BUSINESS PLAN CONTAIN?

Back 9

HOW YOUR GOING TO DEVELOP THE BUSINESS

HOW YOU WILL MANAGE YOUR FINANCES

Front 10

BENEFITS OF A BUSINESS PLAN?

Back 10

MAKES THE ENTREPRENEURS CONSIDER EVERY ASPECT OF THE START-UP SO THEY ELIMINATE FAILURES

MAKES THE BEWARE OF WHAT SKILLS THE ARE MISSING SO THEY CAN HIRE AN EXPERT

VENTURE CAPITAL MAY BE AVAILABLE IF THE INVESTORS LIKE THE BUSINESS PLAN

Front 11

DISADVANTAGES OF A BUSINESS PLAN?

Back 11

THE BUSINESS PLAN IS ONLY A PLAN WHICH DOES NOT GUARANTEE SUCCESS

IF THE PLAN IS TOO RIGID SOME PROBLEMS MAY ARISE

HIGH SALES EXPECTATIONS MAY CAUSE OVERSPENDING IN THE FUTURE

Front 12

WHAT IS UNLIMITED LIABILITY?

Back 12

THE OWNERS OF THE BUSINESS ARE FULLY RESPONSIBLE FOR ANY DEBTS AMD THEIR PERSONAL ASSETS WILL NOT BE PROTECTED

Front 13

WHAT IS A SOLE TRADER?

Back 13

IS SOMEONE WHO OWNS AND OPERATES THEIR OWN BUSINESS. AND MAKES ALL THE DECISIONS

Front 14

ADVANTAGES OF A SOLE TRADER?

Back 14

CAN MAKE ALL THE DECISIONS AND KEEP ALL THE PROFIT

NO ADMINISTRATIVE COST TO PAY

CONFIDENTIAL AS ACCOUNTS AREN'T PUBLISHED

Front 15

DISADVANTAGES OF A SOLE TRADER?

Back 15

THE OWNER IS ONLY RESPONSIBLE IF IT FAILS

LONG HOURS OF WORK IS INVOLVED

BECOMING ILL CAUSES PROBLEMS RUNNING THE FALMILY

Front 16

WHAT IS A PARTNERSHIP?

Back 16

IS WHERE 2-20 PEOPLE DECIDE TO START A BUSINESS WITH A GOAL OF MAKING PROFIT AND MUST HAVE TRUST

Front 17

ADVANTAGES OF A PARTNERSHIP?

Back 17

ADDITIONAL SKILLS AND A SHARED WORKLOAD

MORE CAPITAL IS AVAILABLE TO INVEST

NO ADMINISTRATIVE COST

Front 18

DISADVANTAGES OF A PARTNERSHIP?

Back 18

LOSS OF CONTROL

THERE IS A LOSS OF CONTROL AND PROFIT IS SHARED

MAY BE DISAGREEMENTS

Front 19

WHAT IS LIMITED LIABILITY?

Back 19

THEIR PERSONAL ASSETS WILL BE PROTECTED SO THEY WILL ONLY LOSE WHAT IS INVESTED INTO THE BUSINESS

Front 20

ADVANTAGES OF HAVING LIMITED LIABILITY?

Back 20

GIVES CONFIDENCE TO SHAREHOLDERS SO THEY CAN INVEST

WIDER ACCESS TO FINANCE OPPORTUNITIES

Front 21

DISADVANTAGES OF LIMITED LIABILITY?

Back 21

MORE ANNUAL COST ( DIVIDEND)

BUSINESS MUST PUBLISH ITS FINANCIAL INFORMATION

Front 22

WHAT IS MARKET RESEARCH?

Back 22

GATHERS ALL THE INFORMATION ABOUT THE CONSUMER AND CUSTOMERS

Front 23

WHAT IS SECONDARY RESEARCH?

Back 23

IS DATA WHICH ALREADY EXISTS, CAN BE FOUND THROUGH THE INTERNET AND NEWSPAPER

Front 24

ADVANTAGES OF MARKET RESEARCH?

Back 24

ITS EASY TO ACCESS

ITS USUALLY CHEAP OR FREE

SAVES A LOT OF TIME

Front 25

DISADVANTAGES OF MARKET RESEARCH?

Back 25

MAY NOT BE SPECIFIC NEEDS TO YOUR BUSINESS

MAY NOT BE ACCURATE

RELIABILITY MAY BE QUESTIONED

Front 26

WHAT IS PRIMARY RESEARCH?

Back 26

GATHERS ALL THE INFORMATION DIRECTLY FROM PEOPLE WITHIN YOUR TARGET MARKET

Front 27

ADVANTAGES OF PRIMARY RESEARCH?

Back 27

RESEARCH WILL BE SPECIFIC TO YOUR BUSINESS

GUARANTEE RELIABILITY AND QUALITY

IT IS CONFIDENTIAL TO YOU AND YOUR BUSINESS

Front 28

DISADVANTAGES OF PRIMARY RESEARCH?

Back 28

TIME CONSUMING

VERY EXPENSIVE

Front 29

WHAT IS KNOWN AS MARKET SHARE?

Back 29

IS THE PROPORTION OF THE TOTAL MARKET THAT IS OWNED BY ONE COMPANY.

Front 30

ADVANTAGES OF BEING A MARKET LEADER?

Back 30

HIGH DISTRIBUTION WITHOUT MUCH EFFORT

ABLE TO CHARGE HIGHER PRICES

ABLE TO GET NEW PRODUCTS ONTO SHELVES AND IS WIDELY RECOGNISED

Front 31

RETAINED PROFIT

Back 31

ADVANTAGE;

ITS FREE (INTERNAL SOURCE)

DISADVANTAGE;

NOT ABLE TO START UP BUSINESS

Front 32

SALE OF ASSETS

Back 32

ADVANTAGE;

REDUCE OR ELIMINATE DEBT

DISADVANTAGE;

MAY HAVE TO PAY TAX

Front 33

LOANS

Back 33

ADVANTAGE;

NOT HAVE TO PAY INTEREST IF FROM FRIENDS OR FAMILY

DISADVANTAGE;

MAY HAVE TO PAY LARGE INTEREST FEES

Front 34

DEBENTURES

Back 34

ADVANTAGE;

INTEREST IS LOWER THAN BANK LOANS

DISADVANTAGE;

YOU STILL WILL HAVE TO PAY INTEREST

Front 35

VENTURE CAPITAL

Back 35

ADVANTAGE;

CAN BE USED VERY SUCCESSFULLY (DRAGONS DEN)

DISADVANTAGE;

VERY RISKY WITH A FAILURE RATE

Front 36

SHARE CAPITAL

Back 36

ADVANTAGE;

MAKE MONEY TO INVEST

DISADVANTAGE;

GIVING AWAY OWNERSHIP OF THE BUSINESS

Front 37

OVERDRAFTS

Back 37

ADVANTAGE;

EASILY ACCESSIBLE

DISADVANTAGE;

INTEREST ARE HIGHER THAN LOANS

Front 38

LEASING

Back 38

ADVANTAGE;

YOURS WHEN YOU WANT IT

DISADVANTAGE;

YOU DON'T OWN IT AND ISN'T AN ASSET

Back 39

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