topic one

• the purpose of business activity is to satisfy the needs and wants of consumers and to make a profit
• characteristics of an entrepreneur

  determined

  risk takers

  hard working

  organised

  confident

  creative

  resilient

  leadership skills
• risk - anything that can cause a business to lose profits
• reward - a benefit for doing well in your business
• business plan - a document that outlines the businesses objectives, and how it will achieve them
• reasons to have a business plan

  to have an idea of what they are doing

  to help make a profit

  provides a focus on the business idea

  helps test the financial viability of the business
• types of business ownership

  sole trader - running a business entirely by yourself

  partnership - up to 20 people running a business

  public limited company (PLC) - a company that the public can buy shares in

  private limited company (LTD) - a company that is shared privateky, usually between family and friends
• limited and unlimited liability

  limited liability - a company is only liable for some of their debt, for plc and ltd

  unlimited liability - a company is liable for all debt accumulated, for sole traders and partnerships
• business aims and objectives

  aims - an overall goal/goals for a business

  objectives - smaller goals that will help achieve the aims
• objectives of a business can evolve depending on what the business has already achieved
• stakeholder - someone with a vested interest in a business
• stakeholder examples


  employees

  shareholders

  owners

  customers

  suppliers

  creditors

  competitors

  government

  wider community
• stakeholders are listened to in a business because it is their wants and needs that the business wants to meet
• organic growth - growth by improving the business. selling more products, making new products etc
• external growth - growth of the business through acquisition or merger with another business