A Level Business - Entrepreneurs and Leaders

What is an Enterprise?

The demonstration of risk, fair, and dedication in setting up a business

What is an Enterprenuer?

A person who sets up a business, or businesses, taking on financial risks in the hope of point

What typical characteristics do entrepreneurs have?

• Self confidence

• Knowledge

• Passion

• Open mindedness

What skills do entrepreneurs have?

• Problem solving

• Multitasking

• Thinking skills

• Teamwork and leadership

What are the main sources of ideas for enterprenuers?

• Spotting trends and anticipating their impact

• Indentifying a gap in the market

• Copying ideas from other countries

The keys to spotting new business opportunities are to:

• Think about changes to society

• Think about changes in the economy

• Think about the local housing market

What are the barriors to Enterprenuership?

• Shortage of funds and recourses

• Lack of entreprenuership training

• Lack of market experience

What form of business is a sole trader?

An unincorporated business

What type of liability does a Sole Trader have?

Unlimited liability

What is unlimited liability?

• Refers to a situation where the owners of a firm are personally responsible for the company’s debts and may have to use their personal assets to pay off the debts.

• If the firm cannot meet financial obligations, the owners can be held personally liable and bear the financial burdern using their own money.

What is limited liabity?

A form of legal protection for shareholders and owners that prevents them from being responsible for their company's debts or financial losses

What sector is a sole trader?

Private sector

What is a sole trader?

A person who is the exclusive owner of a business, entitled to keep all profits after tax but liable for all losses

What are the advantages of being a sole trader?

• Easy to set up

• Keeps all the profits

• Makes all the decisions

What are the disadvantages of being a sole trader?

• Can be difficult to raise finance

• Heavy workload

• Unlimited liability

What form of business is a Partnership?

Unincorporated

What type of liability does a Partnership have?

Limited liability

What’s the definition of a Partnership?

The relationship betwen two or more people who trade or do business.

What type of sector is a Partnership?

Private Sector

What are the advantages of a Partnership?

• Can share ideas and insights to help the business thrive

• Additional knowledge

What are the disadvantages of Partnerships?

• Disagreements

• Shared profite

What form of a business is a private limited liability?

Incorporated

What type of liability does a private limited company have?

Limited liability

What is the definition of a Private Limited Company?

An organisation owned by shareholders

What are the advantages of a Private Limited Company?

• The owner can remain in control

• Limited liability

• Wider access to capital

What are the disadvantages of a Private Limited Company?

• Must be registered with the registar of companies

• High set up costs

What is the Stock Market Floatation?

The process of issuing and selling shares to public investors. When a company goes ‘public’ it issues new shares to raise capital.

What is the main stock market in the UK?

The london stock exchange

What form of business is a Public Limited Company?

Incorporated

What type of liability does a Public Limited Company have?

Limited Liability

What is the definition of a Public Limited Company?

A business that is legally allowed to sell it’s shares the public.

What sector does a public limited company have?

Public

What are the advantages of a Public Limited Liability?

• Has limited liability

• Can raise capital through selling shares to the public

What are the Disadvantages of a Public Limited Liability?

• Loss of control the owner of the business is now the shareholder

• Higher set up costs

What form of business is a Franchise?

Unincorporated

What definition does a Franchise have?

A limited company that licenses the right for individuals or groups to set up an identical operation in a new region. Allows a business to expand without the owners taking direct responsibility for each store

Who is a Franchisor?

A Franchisor sells the right to open stores and sell products or services using

Who is a Franchisee?

The franchisee buys the right to the franchise. They purchase the right to use the brands products and materials

What sector is a Franchise?

Private

What are the advantages of a Franchise?

• Reduced risks of business failure

• No prior experience needed

What are the disadvantages of a Franchise?

• Costs may be higher

• May be difficult to sell the franchise

What form of business is a Social Enterprise?

Incorprated

What is the definition of a Social Enterprise?

A business that ploughs it’s profits back into a strong social or environmental mission

What are the advantages of a social enterprise?

• Sustainable revenue

• Increased flexibility

• Tax benefits

What are the disadvantages of Social Enterprise?

• Increased market competition

• Limited grants

What is opportunity Cost?

The value or the option not taken when a business makes a decison