1.4

• What does unlimited liability mean?


  Your personal property is at stake when it comes to investing in your business
• What is limited liability?


  Your loss only goes as far as your business
• What is a sole trader and what are its pros and cons?

  Sole trader is a 1 person company Pros: Full control, easy setup Cons: Unlimited liability, limited resources
• What is a partnership and what are its pros and cons?


  Partnership is a group of joint owners Pros: Shared decision-making, shared resources Cons: Shared profits, unlimited liability
• What is a private limited company and what are its pros and cons?

  Private Limited Company a business that has grown over time Pros: Limited liability, separate legal entity, easier to raise capital, perpetual succession. Cons: More regulations, restrictions on transfer of shares, higher compliance costs.
• What is a franchise and what are its pros and cons?

  Franchise is a way of expanding businesses. Pros: Established brand, support system Cons: High initial costs, lack of control
• What is the marketing mix and the 4 ps?

  a marketing startegy that uses

  product

  price

  place

  promotion
• How does the marketing mix work together?

  balancing - providing different products and services

  Differentiated - higher price depending on the market

  Impact - needs and wants met

  technology - commerce and 4 PS
• What is a business plan?


  documents which set the future plan for a business
• what are the parts of a business plan?

  identify the business idea

  identify the aims and objectives

  identify the target market

  forecast the revenue, cost, profit

  identify the sources of finance

  identify the location
• What does it mean to help in success?

  clear plans so it becomes easier to achieve them

  making official goals
• What is help in risk reduction?

  risk of failure later

  write down and spot problems

  prepare cash flow forecast

  carefully planned can reduce risk later
• What is help in resource allocation?

  input and output process

  flag critical resources that are needs

  human staff

  equitment

  raw materical