Across
- 5. brief summary of the key features of the business and the business plan
- 6. these are the risk takers of the business. They invest capital into the business to set up and expand it.
- 8. educational background and what any previous experience in doing previously
- 9. he sole trader has full control over the business. Decision-making is quick and easy, since there are no other owners to discuss matters with.
- 13. new or small firms usually have survival as a primary objective. Firms in a highly competitive market will also be more concerned with survival rather than any other objective. To achieve this, firms could decide to lower prices, which would mean forsaking other objectives such as profit maximization.
- 15. indication of the cost of producing the product or service, the prices it proposes to charge for the products
- 17. where the government owns and runs business ventures. Their aim is to provide essential public goods and services (schools, hospitals, police etc.) in order to increase the welfare of their citizens, they don’t work to earn a profit. It is funded by the taxpaying citizens’ money, so they work in the interest of these citizens to provide them with services.
- 20. If the owner dies or retires, the business dies with him/her.
- 23. a good or service that people would like to have, but is not required for living. Examples include cars and watching movies.
- 25. where private individuals own and run business ventures. Their aim is to make a profit, and all costs and risks of the business is undertaken by the individual. Examples, Nike, McDonald’s, Virgin Airlines etc.
- 26. : they are a very important part of every business. They purchase and consume the goods and services that the business produces/ provides. Successful businesses use market research to find out customer preferences before producing their goods.
- 28. they are also employees but managers control the work of others. Managers are in charge of making key business decisions.
- 29. this can be defined as the proportion of total market sales achieved by one business. Increased market share can bring about many benefits to the business such as increased customer loyalty, setting up of brand image, etc.
Down
- 1. how much of the capital will come from savings and how much will come from borrowings
- 2. some operations in the private sectors such as social enterprises do not aim for profits and prefer to set more economical objectives. They aim to better the society by providing social, environmental and financial aid. They help those in need, the underprivileged, the unemployed, the economy and the government.
- 3. this consists of all the stakeholder groups, especially the third parties that are affected by the business’ activities
- 4. Since there is only one owner, the sole owner has to undertake all running activities. He/she doesn’t have anyone to share his responsibilities with. This workload and risks are fully concentrated on him/her.
- 7. arguments may occur between partners while making decisions. This will delay decision-making.
- 10. Partners can invest more capital than what a sole trade only by himself could.
- 11. since it is a small form of business, the owner can easily create and maintain contact with customers, which will increase customer loyalty to the business and also let the owner know about consumer wants and preferences.
- 12. As only one owner/investor is there, the amount of capital invested in the business will be very low. This can restrict growth and expansion of the business. Their only sources of finance will be personal savings or borrowing or bank loans (though banks will be reluctant to lend to sole traders since it is risky).
- 14. Similar to sole traders, very few legal formalities are required to start a partnership business. A partnership agreement/ partnership deed is a legal document that all partners have to sign, which forms the partnership. There is no need to publish annual financial accounts.
- 16. Since there is only one owner, he/she will receive all of the profits the company generates.
- 18. once a business has passed its survival stage it will aim for growth and expansion. This is usually measured by value of sales or output. Aiming for business growth can be very beneficial. A larger business can ensure greater job security and salaries for employees. The business can also benefit from higher market share and economies of scale.
- 19. these banks provide financial help for the business’ operations
- 21. name and address of the business and detailed description of the product or service being produced and sold; how and where it will be produced, who is likely to buy it, and in what quantities
- 22. although these businesses do not aim to maximize profits, they will have to meet the profit target set by the government. This is so that it can be reinvested into the business for meeting the needs of the society
- 24. a good or service essential for living. Examples include water and food and shelter.
- 25. this is the income of a business from its activities after deducting total costs. Private sector firms usually have profit making as a primary objective. This is because profits are required for further investment into the business as well as for the payment of return to the shareholders/owners of the business.
- 27. the role of the government is to protect the workers and customers from the business’ activities and safeguard their interests.