business

purpose of a business:producing goods,suppling service,helping others,make money

a good is a physical product

a service is a non tangible product

why start a business: to gain profit,be your own boss

enterprise:new business is formed and new products are created

qualities of a business person:self motivated,risk taker,creative,descision maker,strong minded

sole trader:someone who runs their own business

business plan: a written document describing a business objectives,strategies and cost

break even: making no profit but also not loosing money

sections of a business plan:aims,market,finance,people

partnership: 2 or more people own a business

LTD priv limited company: a company existing by their own right

benefits of an LTD:share descisions,shared risk,more people contributing to finance

benefits of a partership:limited liability,more experience from others

public limited company PLC:can sell shares to the public

benefits of a PLC: bigger reputation,gain exposure,allows access to more money

business objectives: survival,profit,growth,market share

stakeholder:anyone with invested interest in a business activities

organic growth: business expanding from within

external:a business growing by joining another business

horizontal growth:2 business that produce the same thing

vertical:business that opperate different stages of a product

Desertification:2 business that aren’t closely linked

benefit of market research: gain better insight to customers and competitors

benefits of expanding:more customers,profit,recognition

primary research:first hand data e.g interviews

secondary research:pre existing research e.g internet

4 p’s: product,price,promotion,place

expansion strategy: price drop,advertising,packaging change,more features