1:1 Role of Business Enterprise and Entrepreneurship Purpose of a 1:2 Business Planning Role of a business

business plan: plan:

Enterprise is: 1. 1.
A business plan:
Entrepreneurial
characteristics 2. 2.

3.
Knowledge Organiser

4.
Risk Reward Entrepreneur
▪ Financial  Financial
Business plan
▪ Health  Independence
Enterprising
▪ Strained  Self-satisfaction characteristics
relationships Contents Finance
of a
business
plan
Unit 1: Business Activity

1:3 Business Ownership

Sole trader Partnership Private Limited Company (LTD) Public Limited Company (PLC)
Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages
1. 1. 1. 1. 1. 1. 1. 1.

2. 2. 2. 2. 2. 2. 2. 2.

3. 3. 3. 3. 3. 3. 3. 3.

4. 4. 4. 4. 4. 4. 4. 4.

Unlimited liability Responsibility for the debts of the business rests with the owners Capital Money raised to start or develop a business
Deed of partnership A document setting out the operations of the partnership Sleeping partner Someone who only invests in a partnership
Limited liability Responsibility for the debts of the business is limited to the amount invested Shareholders Owners of a limited company
Dividend Money paid to shareholders from business profits
 1:4 Business Aims and Objectives Stakeholders are:
1:5 Stakeholders in Business
Business objectives:
Stakeholde Internal or
external Effects
r

Survival
Internal
stakeholders
Knowledge Organiser

Aims and
Profit objectives External
stakeholders

Market share As businesses evolve their objectives may change

Initially:
Growth Later:
Unit 1: Business Activity

Possible questions
Organic growth 1:6 Business Growth Assessment Information
There are two methods of business growth: 1. State two aims of a new start up
business.
Organic growth External growth Your Paper 1 will be in the morning on
Merger Friday 24th May 2. Define the term ‘entrepreneur’.
▪ Increasing
output Number of marks available: 80
Time allowed: 90 minutes 3. Explain how a business’ objectives
Horizontal V may have changed since first
Takeover e
▪ Gaining new Answer ALL of the questions starting out.
customers r
t 4. Analyse how a business decision
The first 15 questions will be multiple may impact on two stakeholders.
Horizontal growth i choice - you must only select ONE
▪ Developing answer, selecting two will score 0 marks.
new products
c 5. Analyse two benefits of being a
a The other questions will include a range public limited company.
Vertical growth l of 2, 3, 4, 6, 7, & 9 mark questions
▪ Increasing 6. Evaluate the effectiveness of a
market share Diversification business plan.
State Explain Analyse Recommend Evaluate