Business Enterprise and Entrepreneurship

Flashcards covering key vocabulary related to Business Enterprise and Entrepreneurship concepts.

Entrepreneur

A person who takes the risk of starting and running a business.

Business Plan

A simple plan which sets out the details of the business.

Unlimited Liability

Responsibility for the debts of the business rests with the owners.

Limited Liability

Responsibility for the debts of the business is limited to the amount invested.

Shareholders

Owners of a limited company.

Dividend

Money paid to shareholders from business profits.

Risk

The possibility of losing money.

Reward

The potential benefit, often financial, from taking risks in business.

Market Share

The share of the total market for a product.

Organic Growth

Internal growth using own resources, such as opening more shops.

Merger

Two or more businesses agreeing to join together.

Takeover

One business takes control of another.

Horizontal Growth

Two businesses in the same production sector joining together.

Vertical Growth

Two businesses in different production sectors joining together.

Internal Stakeholders

People with an interest in and who work in the business.

External Stakeholders

People with an interest in but who are outside of the business.

Aims and Objectives

Goals the business wants to achieve.

Survival

The business can pay its costs but has nothing left.

Profit

The difference between revenue and costs.

Creativity

An entrepreneurial characteristic involving the ability to generate new ideas.

Determination

An entrepreneurial characteristic involving persistence in achieving goals.

Financial Information

Data about a business's financial performance, which may be private in sole traders and partnerships.