Why are businesses set up?
Personal Reasons - wanting to be their own boss
They were told to
To help others - by setting up a charity, for example
The most important aim for most businesses is to survive and make a profit
What qualities do entrepreneurs need?
Initiative - to seek out business opportunities
Money - to start up the business
Leadership skills - to motivate workers
The ability to think ahead and take risks
Identify an advantage of being a sole trader
You can sell shares to family and friends
They're easy to set up
You have unlimited liability
You don't get any holiday time as you have to look after your business
Which of these is a disadvantage of being a sole trader?
You get to be your own boss
You get to make all the decisions
You can't bounce ideas off of other owners
How many partners make a partnership?
Up to 10
Which of these are disadvantages of being in a partnership?
You are all legally responsible for each other
More capital put into the business
The paperwork relating to a partnership is called
A partnership agreement
A deed of partnership
Which of these are true about Private Limited Companies(PLCs)?
You can sell shares on the stock exchange
You have limited liability
You must have a Memorandum of Association & Article of Association
You are owned by shareholders
Limited Liability companies have their own identity
Which of these is the definition of a franchise?
The right to sell another firm's products
A shop that looks like and sells the same products as the 'mother' shop
Which of these are business aims?
Making a profit
Increasing market share
Being environmentally sustainable
Keeping customers happy
Which of these is correct?
An objective is a short term goal used like a stepping stone to reach the businesses aims
An aim is a short term goal used like a stepping stone to reach the businesses objectives
SMART stands for Specific, Measurable, Achievable, Realistic, Time Scale
A business plan should include...
Objectives of the business
How much start-up capital will be needed
Aims of the business
Credit history of parents/ guarantors