Challenges and opportunities of starting up a business
What is the main reason people start up a business?
To make PROFIT
State the difference between private sector and public sector businesses
Private sector : Any business owned, run or controlled by private individuals
Public sector : Any business owned, run or controlled by the government
How many people can be in a partnership
2-20
Non-governmental organizations (NGO's) are:
Which of these business activities are all in the primary sector?
1. Mining, Education, Government, Agriculture
2. Furniture production, Logging, Education, Mining
3. Childcare, Logging, Government, Fishing
4. Agriculture, Dairy farming, Logging, Mining
4. Agriculture, Dairy farming, Logging, Mining
State 3 opportunities for starting a business
1. Earn money
2. Gain power and recognition
3. Fill a gap in the market
Any other suitable answer
Define Public Corporation
A business organization owned or controlled by the government
Give an advantage and a disadvantage of a joint venture
Advantages :
Access to new markets
Access to other established markets and distribution channels
Less risk as business shared cost with other business
Access to new technology, expertise and knowledge
Increased capacity
Disadvantages :
Unclear communication of objectives
Objectives of two companies could clash, reducing chances of success
Have to share profits
Different culture and management styles so could be lack of leadership
Disagreements possible if one party provides more expertise or finance than other
True or False:
NGO's puts financial objectives ahead of social objectives
FALSE
If a dairy farm also produces its own cheese and ice cream, which industry sector is it in?
1. Primary, Tertiary
2. Primary, Secondary
3. Secondary, Tertiary
4. Tertiary, Quinary
2. Primary, Secondary
State 4 challenges of starting a business
Could include some of these or other suitable answers :
1. Failure to Plan
2. Lack of demand
3. Ineffective marketing
4. Knowledge and skill gaps
5. Financial management
6. Hiring the right employees
7. Leadership
8. Time management and productivity
and more...
What is it called when a country has both a public and a private sector?
Mixed economy
Describe the difference between a franchise and a joint venture
A franchise is an agreement that allows one business to trade under the name of another business to sell the other company’s product or service.
Whereas a joint venture is an enterprise undertaken by two or more businesses pooling resources together on a specific project
What is a famous example of an NGO focused on the environment?
Green Peace
AstraZeneca like Pfizer and Moderna is a global research biopharmaceutical company, which sector of business is this?
Quarternary
State 4 ways new businesses offer benefits to the economy and consumers
Jobs create lower unemployment
Increased competition could lead to more choice and lower prices
They can provide specialist or new services
Start - up businesses, if successful, could grow into large
Which of this are private sector aims :
1 & 3
State 5 advantages of being a sole trader
Can make decisions quickly
Easy to set up
Keep all the profit
Business details are kept quiet
Total control
Think of 3 benefits of working for an NGO
Any of these / others:
1. Developing a diverse skillset
2. Being flexible and efficient
3. Small size aids communications
4. Being creative and responsive
5. A flexible workload
Define quaternary sector
Anything similar to this :
The quaternary sector includes companies engaged in intellectual activities and pursuits. The quaternary sector typically includes intellectual services such as technological advancement and innovation.
List 4 ways the government can help a start-up business
Financial - grants and subsidies, lower tax rates
Information, advice and support
Location - enterprise zones, rent-free spaces
Training and courses for entrepreneurs and/or workers
When there is an investment by private sector to assist with public sector projects its called:
State 6 disadvantages of a partnership
Usually unlimited liability
Limited sources of finance
Must share profits
Slower decision-making than sole trader
Disagreements can cause problems
Everyone responsible for actions of other partners
State 5 disadvantages of working for a small NGO
Any of these or other suitable ones :
1. Funding and sustainability risks
2. Applying for institutional funding
3. Disruptions have a large impact on work
4. Managing limited time and resources smartly
5. Having to do it all yourself
The size of each sector varies among different countries. It can also come over time. State 5 Reasons :
Include any of these or other suitable answers.
Deindustrialization - there is a decline in manufacturing while the tertiary sector increases
Raw materials are discovered/depleted in different countries
Specialization - some countries are good at making certain products or services
Some countries have large workforces so can make products at a lower cost
Rising living standards - people have more time and money for leisure activities