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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DavidBilliet. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £4.01. You're not tied to anything after your purchase.
