Built to Last: Business Structures
Which two business structures are incorporated?
Private & Public limited company
What is bootstrapping?
Bootstrapping - This is a method of financing a new business without having to borrow a lot of cash or take on investors.
What is a clicks & mortar store?
They have an online and physical presence
What are the 3 types of business resources?
Natural, labour & Capital
Explain one way a legal support service may help a business
Structure, contracts, Legal changes, legal representation
What type of liability does a company have?
unlimited
What is crowdfunding?
This is when the business gathers finance through donations from the public for a one-off product. This is usually done by entrepreneurs or artists.
What is an advantage of running online?
various answers
define natural resource
Natural Resources are raw materials from the environment that are used in the production of goods and services.
Explain one way a financial support service can assist a business
Evaluating financial feasibility of the business concept, maintaining records, determining tax requirements, Paying correct entitlements
What is a disadvantage of a sole trader?
Unlimited liability, difficult to run if sick, burden of management, hard to raise finances
Business angels are an individual who provides a small business start-up with capital, generally in return for ownership equity or convertible debt.
What is a disadvantage of running online?
various answers
define capital resource
Labour resources are the people who provide the business with their skills and qualifications to conduct business activities. Labour resources need to be considered differently from other resources, as human emotions and behaviours need to be taken into account.
Explain one way tech support services can assist a business
Developing and maintaining tech systems, advise on hardware, maintain security, IT training
How many owners can a partnership have?
2-20
How can suppliers help fund a business?
Businesses are able to pay suppliers at a later date through offering a trade credit, allowing them more time to repay when possible
Give an example of a business that uses the brokerage model where the business brings together buyers and sellers
Ebay, facebook marketplace
define capital reosurces
Capital resources are man-made goods used in the production of goods and services. Capital resources allow businesses to produce their products faster and help deliver high-quality goods and services to customers
What is a formal network in regards to a business support service
Groups and organizations that help business owners. They bring together people to discuss and communicate on business matters, can include talking to other business owners
What is the main difference between a public & private company?
Private can choose who they sell shares to
explain how venture capitalists relate to business funding?
Venture capitalists - This is large sums of money that are invested by large corporations into start-up businesses with the potential for high growth and large profits. They provide guidance and influence strategic direction
Define Franchise
where a business owner grants another the right to use their trademark or trade name, business systems and processes
Give an example of each type of resource
varies
What is an informal network in regards to a business support service
•Anyone that you can just talk to or get business information from such as family, friends, social media. It is a more casual approach