This Unit 2 Business Studies revision guide is a comprehensive resource covering chapters 1.5 to 2.0. It includes concise summaries, essential vocabulary and definitions, as well as detailed calculations. This guide is designed to provide a thorough and organized review, ensuring that students have...
,TOPIC 2.1:
The role of an entrepreneur:
“A person who is willing to take risks in setting up and growing their business.”
-Innovate & Invest
-Make decisions
-Take risks
-Organise
Where ideas come from:
-Business experience
-Personal experience
-Spotting a gap
-Lifestyle choice (be your own boss)
Setting up a business:
Idea, research, planning, financing, location, resources, launch
Running and developing a business:
-Financial management
-Purchasing
-Administration: tax, insurance
-Marketing
-Production
-Managing people
Intrapreneur: “Employee within a business who has the freedom to develop their ideas and
use their creativity to innovate.” (solve problems, create new products, etc…)
Barriers to success:
-Lack of finance
-High competition (big businesses=
-Aversion to risk
-Lack of entrepreneurship skills
-Legal barriers
-Lack of ideas
Characteristics and Skills of Entrepreneurs
-Self-confidence
-organized
-innovative
-(all that kind of bs everyone knows)
, Business Objectives:
Non-Financial Financial
Personal satisfaction Survival
Social objectives Profit
Customer satisfaction Growth
Sustainability Market share
Employee welfare Shareholder value
Cost efficiency
Minimise cost of production
Influences on Business Objectives: Size, sector, market, ownership, owner
Forms of business
Sole Trader:Owned by -Easy to start up
self-employed individuals -needs skills and flexibility
-unlimited liability
-owner keeps all profits
Partnerships: Owned by two or -joint ownership pf running a business
more individuals -contract of relationship
-greater
Private limited company: -the process of incorporation
Owned by shareholders -limited liability
separate legal entity -wider access to capital
Public limited company: Public -raise capital by selling shares
limited company large publicly -measured by market capitalization
owned companies -ability to take over other businesses
Franchisor: A business that -an effective way to grow business
allows others to operate under -risk if not run effectively
its name and business model for -provided with training and support
a fee. -expensive setup fees
-royalty payments
Liability:” Being legally responsible for the debts, obligations, or actions of a company”
Private Limited Companies Public Limited Companies
-Shareholders' limited liability -Huge amounts of money made through
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