G9
A person who organizes, operates and takes the risk for a new business venture....
A. entrepreneurship
B. enterprise
C. entrepreneurial
D. entrepreneur
D
The number of people employed and value of..........are two ways of measuring the size of a business.
A. profit
B. expenses
C. shares
D. output
D
Occurs when a business expands its existing operations...
A. external growth
B. internal growth
C. company growth
D. business growth
B
It Is a document containing the business objectives and important details about the operations, finance, and owners of business
A. business plan
B. general proposal
C. important document
D. executive summary
A
Comparing business size is useful for, except....
A. Investors
B. Governments
C. Doctors
D. Workers
C
It is where two or more businesses start a new project together, sharing capital, risks and profits.
Joint venture
It means that the owners of a business can be held responsible for the debts of the business they own. Their liability is not limited to the investment they made in the business.
Unlimited liability
They are the owners of a limited company. They buy shares which represent part-ownership of the company.
Shareholders
These are companies that have separate legal status from their owners.
Incorporated businesses
It is a business owned by one person
Sole trader
3 Objectives of Social Enterprise
- Social
- Environmental
- Financial
3 External Stakeholders
- Consumers
- Government
- The whole community
- Banks
- Suppliers
- Labour union
- Creditors
3 Objectives of Public Sector Businesses
- Financial
- Service
- Social
3 Internal Stakeholders
- Owners
- Managers
- Workers
- Directors
- Investors
3 Business Objectives in the Private Sector
- Business survival
- Profit
- Returns to shareholders
- Growth of the business
- Market share
- Service to the community
3 Reasons Why Business Remain Small
1. The type of industry in business operates in
2. The market size
3. The owner's objective
3 external growth
- Horizontal merger
- Vertical merger
- Conglomerate merger
3 Contents of a Business Plan
- Description of the business
- Products and services
- The market
- Business location and how products will reach customers
- Organisation structure and management
- Financial information
- Business strategy
3 Characteristics of Successful Entrepreneurs
- Hard working
- Risk taker
- Creative
- Self-confident
- Innovative
- Independent
- Effective communicator
3 Causes of Business Failure
- Lack of management skills
- Changes in the business environments
- Liquidity problems/ poor financial management
- Over-expansion
Who are they?
1. ... is the owner of sole trader.
2. ... is the original or existing business that sells the right to use its name and idea.
3. ... is the individual who purchases the right to sell the franchisor's goods or services using its existing business model and trademark.
Sole proprietor
Profits are needed to:
1. ....
2. ....
1. Pay a return to the owners of the business
2. Provide finance for further investment
3 Benefits of Private Limited Companies
- Raise capital from sale of shares
- Limited liability to shareholders
- Separate legal identity
- Continuity
Returns to shareholders are increased in two ways:
1. ....
2. ....
1. Increasing profit and dividends
2. Increasing share price
3 Limitations of Public Limited Company
- Legal formalities
- Disclosure of accounts and other information
- Divorce between ownership and control
- Expensive to 'go public'