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Business Activity (pt. 1) (Business Ownership (Partnership (Advantages…
Business Activity (pt. 1)
Role of Business Enterprise and Entrepreneurship
Characteristics
Risk-Taking
Detrermined
Creative
Confident
Definitions
Enterprise
Seeing an opportunity to provide a product or service that people are willing to buy.
Entreprenur
A person who takes the risk of starting and running a business.
Risks & Rewards
Risks
Possibility of losing money
Strain of being in charge can be strenuous on the body
Time-Consuming
Rewards
Manage at your own rate
Satisfaction of helping people
Success === £££
Business Planning
Purposes and Roles
To reduce the risk od starting a business
To help a business stay on track
To guarantee bank will provide a loan
Identifying resources needed
Contents
Aims and objectives
Target Market
Competion
The idea
People running it
Market research
Financing
Business Ownership
Partnership
Advantages
Easy to set up
More skills available
More capital available
Shared workload
Private financial information
Disadvantages
Unlimited Liablity
Shortage of capital
Shared profit
Slower decision making
No Continuity
Private Limited Company (LTD)
Advantages
Continuty
Can raise capital more easily
Limited liability
Control over share sale
Disadvantages
Complex and expensive to set up
Sale of shares is restricted
Financial information available to the public
Dividends
Sole Trader
Advantages
Easy to set up
Little finance required
Full control
Keep all profits
Financial information is private
Disadvantages
Shotrage of capital
Skills shortage
Long working hours
No continuity if sole trader dies
Business stops of ill/on holiday
No Profits
Unlimited liability
Public Limited Company (PLC)
Advantages
Easier to borrow money
Limited liability for shareholders
Can raise large amounts of capital
Disadvantages
Possibility of a takeover
Complex and expensive to set up
Hard to manage because so large
Financial information available to the public