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39 Cards in this Set
- Front
- Back
Define what Entrepreneurs are? |
THEY ARE PEOPLE WHO BRING THE NEW BUSINESSES INTO THE MARKET. AND OFTEN RECEIVE GRANTS TO HELP THEM TO SET UP THE BUSINESS. |
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WHY ARE ENTREPRENEURS IMPORTANT FOR THE BUSINESS WORLD? |
CREATE JOBS AND OPPORTUNITIES ARE ABLE TO SPOT GAP IN THE MARKET |
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DISADVANTAGES OF AN ENTREPRENEURS? |
DIFFICULT TO GET A FUND DUE TO LACK OF EXPERIENCE DUE TO AGE MAY NOT BE TAKEN SERIOUSLY |
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DEFINE WHAT A FRANCHISE IS? |
IT IS A PERSON WHO PAYS TO BE PART OF A SUCCESSFUL AND ESTABLISHED BUSINESS SUCH AS MCDONALD'S.
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ADVANTAGES OF A FRANCHISE? |
GOOD WAY TO START AN ESTABLISHES BUSINESS MANY CUSTOMERS WILL BE ABLE TO RECOGNIZE THE BRAND EASILY DUE TO THE BRAND BEING SUCCESSFUL BANKS ARE MORE LIKELY TO GIVE BANK LOAN AND WILL HAVE TO PAY LITTLE INTEREST. |
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DISADVANTAGES OF A FRANCHISE? |
MOT MUCH FREEDOM IN DECISION MAKING THE FRANCHISER TAKES A CUT OF THE INCOME SO VERY HARD TO MAKE LARGE PROFIT VERY EXPENSIVE |
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WHAT IS A BUSINESS PLAN? |
IS A PLAN WHICH SETS OUT HOW A BUSINESS IDEA WILL BE FINANCED MARKETED AND PUT INTO PRACTICE. |
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WHY IS IT GOOD TO MAKE BUSINESS PLAN? |
GIVES DIRECTION HELPS MAKE DECISIONS ABOUT THE RESOURCES THAT ARE NEEDED HELPS TO MEASURES SUCCESS |
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WHAT SHOULD A GOOD BUSINESS PLAN CONTAIN? |
HOW YOUR GOING TO DEVELOP THE BUSINESS HOW YOU WILL MANAGE YOUR FINANCES |
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BENEFITS OF A BUSINESS PLAN? |
MAKES THE ENTREPRENEURS CONSIDER EVERY ASPECT OF THE START-UP SO THEY ELIMINATE FAILURES MAKES THE BEWARE OF WHAT SKILLS THE ARE MISSING SO THEY CAN HIRE AN EXPERT VENTURE CAPITAL MAY BE AVAILABLE IF THE INVESTORS LIKE THE BUSINESS PLAN
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DISADVANTAGES OF A BUSINESS PLAN? |
THE BUSINESS PLAN IS ONLY A PLAN WHICH DOES NOT GUARANTEE SUCCESS IF THE PLAN IS TOO RIGID SOME PROBLEMS MAY ARISE HIGH SALES EXPECTATIONS MAY CAUSE OVERSPENDING IN THE FUTURE |
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WHAT IS UNLIMITED LIABILITY? |
THE OWNERS OF THE BUSINESS ARE FULLY RESPONSIBLE FOR ANY DEBTS AMD THEIR PERSONAL ASSETS WILL NOT BE PROTECTED |
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WHAT IS A SOLE TRADER? |
IS SOMEONE WHO OWNS AND OPERATES THEIR OWN BUSINESS. AND MAKES ALL THE DECISIONS |
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ADVANTAGES OF A SOLE TRADER? |
CAN MAKE ALL THE DECISIONS AND KEEP ALL THE PROFIT NO ADMINISTRATIVE COST TO PAY CONFIDENTIAL AS ACCOUNTS AREN'T PUBLISHED |
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DISADVANTAGES OF A SOLE TRADER? |
THE OWNER IS ONLY RESPONSIBLE IF IT FAILS LONG HOURS OF WORK IS INVOLVED BECOMING ILL CAUSES PROBLEMS RUNNING THE FALMILY |
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WHAT IS A PARTNERSHIP? |
IS WHERE 2-20 PEOPLE DECIDE TO START A BUSINESS WITH A GOAL OF MAKING PROFIT AND MUST HAVE TRUST |
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ADVANTAGES OF A PARTNERSHIP? |
ADDITIONAL SKILLS AND A SHARED WORKLOAD MORE CAPITAL IS AVAILABLE TO INVEST NO ADMINISTRATIVE COST |
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DISADVANTAGES OF A PARTNERSHIP? |
LOSS OF CONTROL
THERE IS A LOSS OF CONTROL AND PROFIT IS SHARED MAY BE DISAGREEMENTS |
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WHAT IS LIMITED LIABILITY? |
THEIR PERSONAL ASSETS WILL BE PROTECTED SO THEY WILL ONLY LOSE WHAT IS INVESTED INTO THE BUSINESS |
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ADVANTAGES OF HAVING LIMITED LIABILITY? |
GIVES CONFIDENCE TO SHAREHOLDERS SO THEY CAN INVEST WIDER ACCESS TO FINANCE OPPORTUNITIES |
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DISADVANTAGES OF LIMITED LIABILITY? |
MORE ANNUAL COST ( DIVIDEND) BUSINESS MUST PUBLISH ITS FINANCIAL INFORMATION |
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WHAT IS MARKET RESEARCH? |
GATHERS ALL THE INFORMATION ABOUT THE CONSUMER AND CUSTOMERS |
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WHAT IS SECONDARY RESEARCH? |
IS DATA WHICH ALREADY EXISTS, CAN BE FOUND THROUGH THE INTERNET AND NEWSPAPER |
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ADVANTAGES OF MARKET RESEARCH? |
ITS EASY TO ACCESS ITS USUALLY CHEAP OR FREE SAVES A LOT OF TIME |
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DISADVANTAGES OF MARKET RESEARCH? |
MAY NOT BE SPECIFIC NEEDS TO YOUR BUSINESS MAY NOT BE ACCURATE RELIABILITY MAY BE QUESTIONED |
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WHAT IS PRIMARY RESEARCH? |
GATHERS ALL THE INFORMATION DIRECTLY FROM PEOPLE WITHIN YOUR TARGET MARKET |
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ADVANTAGES OF PRIMARY RESEARCH? |
RESEARCH WILL BE SPECIFIC TO YOUR BUSINESS GUARANTEE RELIABILITY AND QUALITY IT IS CONFIDENTIAL TO YOU AND YOUR BUSINESS |
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DISADVANTAGES OF PRIMARY RESEARCH? |
TIME CONSUMING VERY EXPENSIVE |
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WHAT IS KNOWN AS MARKET SHARE? |
IS THE PROPORTION OF THE TOTAL MARKET THAT IS OWNED BY ONE COMPANY. |
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ADVANTAGES OF BEING A MARKET LEADER? |
HIGH DISTRIBUTION WITHOUT MUCH EFFORT ABLE TO CHARGE HIGHER PRICES ABLE TO GET NEW PRODUCTS ONTO SHELVES AND IS WIDELY RECOGNISED |
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RETAINED PROFIT |
ADVANTAGE; ITS FREE (INTERNAL SOURCE) DISADVANTAGE; NOT ABLE TO START UP BUSINESS |
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SALE OF ASSETS |
ADVANTAGE; REDUCE OR ELIMINATE DEBT DISADVANTAGE; MAY HAVE TO PAY TAX |
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LOANS |
ADVANTAGE; NOT HAVE TO PAY INTEREST IF FROM FRIENDS OR FAMILY DISADVANTAGE; MAY HAVE TO PAY LARGE INTEREST FEES |
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DEBENTURES |
ADVANTAGE; INTEREST IS LOWER THAN BANK LOANS DISADVANTAGE; YOU STILL WILL HAVE TO PAY INTEREST |
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VENTURE CAPITAL |
ADVANTAGE; CAN BE USED VERY SUCCESSFULLY (DRAGONS DEN) DISADVANTAGE; VERY RISKY WITH A FAILURE RATE |
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SHARE CAPITAL |
ADVANTAGE; MAKE MONEY TO INVEST DISADVANTAGE; GIVING AWAY OWNERSHIP OF THE BUSINESS |
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OVERDRAFTS |
ADVANTAGE; EASILY ACCESSIBLE DISADVANTAGE; INTEREST ARE HIGHER THAN LOANS |
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LEASING |
ADVANTAGE; YOURS WHEN YOU WANT IT DISADVANTAGE; YOU DON'T OWN IT AND ISN'T AN ASSET |
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