business

• why do business exist?

  to satisfy the needs of the wants and customers
• what are the three purpose of business enterprise and the entrepreneurship?

  spotting an opportunity/developing an idea/satisfying the customer needs
• what are the characteristics of an entrepreneur?

  innovative, risk-taking, proactive, resilient, visionary ,determined, confidence, creativity
• what are the risk and rewards?

  Risk and rewards are the potential positive or negative outcomes of a decision or action.
• what is the purpose of business planning?

  to reduce failure and to be as successful as possible
• what are the steps involved in developing a business plan?

  the idea, the people, market research, finance, competitors
• what is the role/importance and usefulness of the business plan?

  The business plan outlines the goals, strategies, and financial projections of a business. It is important for securing funding, guiding decision-making, and communicating the business's vision to stakeholders.
• what is business ownership?

  The legal and financial control of a business by an individual or group.
• what is a sole trader and the benefits?

  A sole trader is a business owned and operated by one individual. The benefits include full control, simplicity, and all profits belong to the owner. the business stops when the owner dies. the owner has unlimited liability
• what are the positives and negatives of a partnership in business?

  Positives: Shared responsibility, shared resources, and shared decision-making. Negatives: Unlimited liability, potential for disagreements, and shared profits.
• what are the positives or negatives about private limited company?

  Positives: Limited liability, separate legal entity, easier access to funding, continuity of existence. Negatives: Limited control, restrictions on transfer of shares, higher compliance requirements, potential for conflicts among shareholders.
• what are the positives and negatives of public limited company?

  Positives: Limited liability, ability to raise capital through public offerings, potential for growth and expansion. Negatives: Increased regulatory requirements, loss of control for founders, potential for hostile takeovers.
• what is liability in business?

  Legal responsibility or obligation of a business entity to settle debts or fulfill contractual agreements.
• what is unlimited and what are the impact on the business?

  when if the owner become bankrupt they owner must uses personal asset pay it back and this may stop people from setting you a business.
• what is limited liability and what are the impact on business?

  Limited liability is a legal concept that protects the personal assets of business owners from being used to settle business debts. It encourages entrepreneurship and investment by reducing the financial risk for individuals starting or investing in a business.
• what is the suitability of a business?

  Profitability and different finance due to type of ownership
• what suitability does a sole trader need in terms of money?

  start up business mainly, small amount of finance, require only limited skills
• suitability for partnerships

  need larger amounts for money, fairly low financial risk, need a wide range of skills and have owners who want to keep control of the business
• suitability for private limited company


  need larger amounts of money, high financial risk, have owners that wish to keep control of the business
• suitability for a public limited company


  wishes to grow/ needs very high amounts of finance/ very high financial risk
• what are the 4 business objectives?

  Profitability, growth, providing a service, and survival .
• why might a business change their aims or objectives?

  Market changes, competition, technological advancements, customer demands, financial constraints, and organizational growth are some reasons why a business might change their aims or objectives.
• what is the owner's role and objectives?

  To manage and oversee the business, and to maximize profits and growth.
• what is the employees role and objectives?

  To fulfil their job responsibilities and achieve their assigned goals while they earn a goo salary and the enjoyment social aspects
• what are the customer's role and objective?

  Role: To purchase goods or services from a business. Objective: To satisfy their needs and wants by obtaining value from the products or services they purchase.
• what is the suppliers role and objectives?

  The supplier's role is to provide goods or services to a buyer. Their objectives are to meet the buyer's needs, deliver products on time, and maintain a good relationship with the buyer.
• what is the government role and objective in a business?

  help workers and communities and their objectives are to help business as it will lead to high employment as this will increase taxes.
• what is the role and objective of the local community in a business?

  Support and growth.
• how do owner impact the business pros and cons?

  Pros: Decision-making authority, ability to shape company culture, potential for higher profits. Cons: Responsibility for financial risks, potential for conflicts of interest, limited personal time.
• how does the employees impact the business pros and cons?

  Pros: Increased productivity, creativity, and innovation; improved customer service; enhanced teamwork and collaboration; higher employee morale and job satisfaction. Cons: Potential for conflicts and disagreements; increased costs for salaries and benefits; risk of employee turnover and loss of knowledge; potential for negative impact on company culture.
• how do customers impact the business pros and cons?

  Pros: Customers provide revenue and profit for the business, provide feedback and insights for improvement, and can become loyal advocates for the brand. Cons: Customers can be demanding and difficult to satisfy, can leave negative reviews or spread negative word-of-mouth, and may have changing preferences that require constant adaptation by the business.
• how does suppliers impact the business pros and cons?

  Pros: Reliable and high-quality suppliers can ensure a steady supply of goods or services, improve product quality, and provide cost savings through bulk purchasing or negotiated discounts. Cons: Unreliable or low-quality suppliers can lead to disruptions in the supply chain, delays in production, increased costs, and damage to the business's reputation.
• how does the government impact the business pros and cons?

  pro: receive tax from lots of people in the business cons: the large companies may get too big to fail and if they do it will look bad
• how does the local community impact the business pros and cons?

  pros: people can earn money from jobs. people have a place to spend their money. cons: could be pollution and road congestion near where they live
• what is organic growth?

  Natural increase in a company's revenue and profits through its existing operations, without relying on acquisitions or mergers.
• what is external growth?

  External growth refers to the expansion of a company through mergers, acquisitions, or partnerships with other businesses.
• what are the different types of expanding business?

  Horizontal, vertical, backward vertical, forward vertical and diversification