1.4

• sole trader - one person starts and runs the business

  • keep all the profit
• partnership - 2-20 people own/run the business

  • knowledge and expertise
• private limited company - shares of the business can be sold to friends and family

  • can raise more finance from selling shares
• pros/cons of a franchise:

  • lower risk than setting up a new business
  • support and training
  • have to pay an initial large fee
  • have to pay royalties
• unlimited


  you can lose all your assets
• limited


  you can only lose the money you invested into the business
• e-commerce


  using the internet to carry out business transactions
• m-commerce


  using phones/tablets to carry out business transactions
• factors that influence choice of location:

  • how far you are from suppliers
  • proximity to labour
  • proximity to market/competition
• pros/cons of a business plan:

  • reduces risks
  • helps predict problems
  • needs time and effort
  • needs to be constantly updated
• 4 p's (marketing mix)

  • product
  • price
  • promotion
  • place
• 4 parts of a business plan:

  • location
  • cash flow forecast
  • business idea
  • marketing mix
• marketing mix


  a combination of elements, used by a business to meet its needs