business

• Need


  A good or service essential for living
• Want


  A good or service which people would like to have but is not essential for living
• Specialisation


  When people and businesses concentrate on what they are best at
• Partnership


  A business in which two or more people agree to join
• Disadvantages of partnership

  • Must share profit
  • Disagreement along partners
• Advantages of partnership

  • Share ideas
  • More capital
• Sole trader

  A business owned by one person
• Causes of business failure


  • Lack of skills
  • Change in the environment
  • Poor financial management
• Disadvantages of being a sole trader

  • No one to discuss business matters with
  • Do not have enough money
  • If ill, no one will take control of the business
• Advantages of being a sole trader

  • He is his own boss
  • He has the freedom to choose his own holiday
• oportunity cost is the next best alternative given up by choosing another item
• Factors of production

  • Land
  • Labour
  • Enterprise
  • Capital
• Risk taker

  Produce good or service that people might buy is potentially risk
• Characteristics of successful entrepreneurs

  • Risk-taker
  • Creative
  • Self-confident
  • Hard-working
• finance-loans for small business at low interest rates
• business idea and help-organising traning for entrpreneur that give advice
• A joint venture is where two or more businesses start a project together sharing risk , capital and profits
• A public corporation is a businesses in the public sector controlled and owned by government
• Advantages of joint venture

  • Sharing of cost
  • Risks are shared
• Disadvantages of joint venture

  • Disagreement
  • Different ways of running a business
• A FRANCHISE BUSINESSES is a business that is owned by one person and is allowed to use the name of the owner
• A joint venture is where two or more companies join together to carry out a business activity sharing capital and risks.
• Business objectives

  • Profit
  • Business survival
  • Market share
• A stakeholder is a person or group that has an interest in the business and is affected by its activities.
• Stakeholder groups

  • owners
  • workers
  • managers
  • customers
  • government
  • the whole community
  • banks
• market share is the percentage of a total market sales held by one brand or business
• profits is total income of a business (revenue) less total costs
• Advantages of joint ventures

  • Sharing of costs
  • Risks are shared