Edexcel A Level Business - Theme 1.5

what is a entrepreneur

someone who takes a risk to set up a business for profit

what does intrapreneurship mean

An employee within a larger business who thinks like an entrepreneur

a few entrepreneurial characteristics

creativity

hard work

resilience

risk taking

a few entrepreneurial skills

IT

Team working

Numeracy

what is a business objective

a goal or aim that a business wants to achieve

what is limited liability

if the company falls into debt, the owner is protected from giving their personal funds

what is a sole trader, pro and cons

business owned by one person, unlimited liability

pro

easy to set up, keep all profit

cons

unlimited liability

hard to raise money

what is a partnership pros and cons

2-20 people ran business, unlimited liability

pro

shared ideas

shared work, less stress

cons

share profit

more arguing, slower decision making

unlimited liability

what is a public limited company, pros and cons

a business which has limited liability, and the ability to sell shares openly, on the stock market.

pros

limited liability

easy to raise finance

cons

have to show accounts

harder to set up

what is a private limited company, pros and cons

a grown sole trader with limited liability, ran by many

pros

limited liability

own legal status separate from business

cons

publish accounts, cannot sell shares openly, only to select individuals

what does opportunity cost mean

Value of the next best alternative foregone.