What are the key characteristics of an entrepreneur?

Creativity, determination, risk-taking and confidence.

How can planning reduce risk?

By preparing for problems before they happen.

"A business owned and run by one person..."

A sole trader.

"Money left after costs are deducted from revenue..."

Profit.

Name internal stakeholders:

Owners and employees.

What is a takeover?

When one business buys another to get rid of competition.

What is the purpose of business activity?

To produce goods and services, to meet customer needs, and make a profit.

"a document outlining a businesses aims, finances, marketing and operations."

A business plan.

What is limited liability?

If the company falls into debt you only pay back what you invested.

Why might objectives change over time?

Businesses evolve and priorities change.

What is an stakeholder?

Any person or group affected by a business.

What is a merger?

When two businesses join together.

"The chance that a business may fail or loose money..."

Is the definition of risk in business.

What is a private limited company(Ltd)?

A business owned by shareholders which are protected by limited liability and shares are sold privately.

What are business aims and objectives?

Business aims are the long-term goals of a business, while objectives are specific, measurable steps to achieve those aims.

Name external stakeholders:

Customers Suppliers Government Local community.

What is organic growth?

Growth from within the business by increasing output or customers.

What is meant by reward in business?

The benefits gained from taking risks, such as profit.

Which ownership type is common for start-ups?

Sole traders and partnerships.

Why do entrepreneurs spot opportunities?

To identify gaps in the market and satisfy customer needs.

Why is a plan important?

It helps obtain finance, identify resources and achieve objectives.

"a company whose shares can be sold to the public on the stock exchange..."

Public limited company(Plc).

"The percentage of total market sales made by a business..."

Market share.

Why are customers important stakeholders?

They buy the businesses products and generate revenue.

What is diversification?

Expanding into new markets or products.

"The ability to identify opportunities and take risks to start and run a business..."

Enterprise.

What is the purpose of business planning?

To reduce risk and help a business succeed.

What is a partnership?

A business owned by two or more people.

Why might a business aim for survival?

To continue operating during difficult times.

How can businesses affect stakeholders?

Through employment, pricing, pollution or customer service.

What is external growth?

Growth through mergers or takeovers.