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3 purposes of business activity and enterprise
spotting an opportunity, developing an idea for a business, satisfying the needs of customers
4 characteristics of an entrepreneur
determination, creativity, risk-taking, confidence
3 risks of business
financial loss, business failure, lack of security
3 benefits of business
profit, independance, business success
3 ways to minimise risk
business plan, market research, sufficient capital
2 purposes of planning business activity
minimising risk, helping a business succeed
4 roles of a business plan
identifying markets, achieving aims and objectives, helping obtain finance, identifying recources a business needs
9 components of a business plan
business idea, aims and objectives, market research, revenue, cost and profit, cash flow, source of finance, location, marketing mix
limited liability meaning
business owners are only responsible for business debts as much as they have invested in the business. the owners and the business are seperate entities.
unlimited liability meaning
business owners personally responsible for all business debts. the owners and the business are the same entity
3 features of a sole trader
1 person owns the business, unlimited liability, pays income tax
3 features of a partnership
2 or more owners, deed of partnership, unlimited liability, pays income tax
what are the owners of a company called
shareholders
who runs a company
the ceo and board of directors
how are shares sold in a plc
publically on a stock market
how are shares sold in an ltd
privately and must be approved
3 advantages of a soletrader
quick and easy to set up, makes own decisions, keeps profit
3 disadvantages of a sole trader
unlimited liability, long hours, high resposibility
3 advantages of a partnership
quick and easy to set up, shared resposibility, shared decision making
4 disadvantages of a partnership
long hours, conflict, unlimited liability, one partner may not uphold responsibilities
3 advantages of a private limited company
limited liability, shares sold for money, selling of shares is monitored so less risk of takeover
3 disadvantages of a private limited company
more paperwork, financial information can be requested, time consuming to set up
2 advantages of a public limited company
money can be easily raised, lmited liability
2 disadvantages of a public limited company
expensive to set up, greater risk of takeover
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