Business Unit 1

• Entrepreneur


  some who takes a risk to set up a business
• enterprise


  Seeing an opportunity to provide and create a product or service
• Aims and objectives


  What the business wants to and needs to achieve
• Business plan


  simple plan which sets out details of the product or service
• Markets


  Where a business sells its goods and services
• Sole trader


  One person owns and finances business
• Partnership


  2-20 partners own and finance a business
• private Limited company LTD

  Shares are sold to family and friends
• Public limited company PLC

  Shares are sold to anyone on stock exchange
• Unlimited liability 


  Owners of business are responsible for all of the debt.Personal possession may have to be sold when in debt
• Limited liability


  Owners are not responsible for the debt.Only lose initial investmenr
• organic growth 


  Internal growth of business
• external growth

  Growth by takeover or merger
• Diversification 


  When business mergers/takes over a business with no connection
• Forward vertical growth 


  When a business merges/takes over a business it supplies to
• Horizontal growth 


  A merger or takeover where the the businesses are involved in a similar operation
• Merger


  Two or more businesses join to become one
• Takeover 


  A business takes control by owning 50% or more of shares
• Marketing mix (4 p’s)


  4 p’s:

  • produce
  • price
  • promotion
  • place
• Market research


  How businesses collect information on wether their Products will sell
• Primary research


  New Info collected by business
• Secondary


  info which already exists
• Market segmentation


  MS:

  • Age
  • gender
  • income
  • location
  • lifestyle
• Product life cycle


  Introduction,Growth,Maturity,Decline
• Loss Leader 


  When business sells product at a loss