Area of Study 1 - Business Idea
Two sources of business opportunity
Innovation & Entrepreneurship, market opportunities, changing customer needs, research and development, technological development, global markets
Business environments
Internal, Operating and Macro environments
List the three business resource needs
Natural, Labour, Capital
One way of protecting the business idea
Trademark, Patent, Domain name, Copyright, Design Rights
Explain one type of business support service
Legal advice, financial advice, technological advice, community-based services
List the three types of goals
Personal goals, financial goals, social goals
Customers, competitors, suppliers
Choose one business location and provide advantage and disadvantage
Shopping strip, shopping centre, online presence, home-based business
Distinguish between limited and unlimited liability. Which structures have what?
Unlimited liability – full liability of owner (if their business fails) to the extent of their personal assets. Sole trader and partnerships have unlimited liability, companies are limited.
Explain all parts of SWOT and identify which are internal and external
Strengths, Weaknesses (Internal)
Opportunities, Threats (External)
The four reasons that someone might start a business
Independence, to make a profit, to fulfill a market need, to fulfill a social need
Explain two elements of the macro environment
Legal and government regulations, societal attitudes and behaviours, economic conditions, technological developments, global issues, CSR
Two types of finance and distinguish between them
Equity and Debt. Equity (the funds contributed by the owner(s) of a business to start and build the business) whereas Debt (the funds provided by banks, other financial institutions, government and suppliers which is paid back with interest)
List all 5 business models
Online, bricks and mortar, social enterprises, franchise, import/export
A business plan is a written statement of the goals and objectives for a business, and the steps to be taken to achieve them. The planning process is a series of actions taken to achieve an objective
List and explain all elements of a SMART goal
Specific (clear and focused), Measurable (quantifiable), Attainable (challenging but realistic), Relevant (worthwhile and based on the market), Time-bound (deadline is set)
The supply chain is crucial because if one part of it does not do its job, there are follow on issues
List 3 of the 5 factors affecting choice of finance
Terms of finance, business structure, overall cost, flexibility, level of control
Explain one way that businesses contribute to the economic and social wellbeing of a nation
Economic (employment and tax revenue, economic growth, export earnings, R&D), Social (career and social wellbeing, innovation, CSR)
List one type of CSR issue in relation to business planning
Environmental issues, customer issues, staffing issues
Characteristics of entrepreneurs
Shared vision (what they want the business to look like in the future and share that with the business), Initiative (proactive in taking first steps), Innovation and Enterprise (they take risks)
List 4 different special interest groups
Specific issue groups, environmental lobby groups, business associations, unions, consumer groups
Explain the four different business legal structures
Sole trader, partnership, private limited companies, public companies
List the five factors affecting choice of business location
Visibility, Cost, Proximity to customers and suppliers, proximity to competitors, complementary businesses
Explain two ways the government encourages innovation and entrepreneurship
Government investment in R&D (funding, grants, tax incentives), business mentorships, school-based educational programs, regional business hubs