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Questions and Answers
What is a major disadvantage of sole proprietorship?
Which type of partner in a partnership is fully involved in the day-to-day operations?
What does 'limited liability' mean in the context of a partnership?
What is the main purpose of a partnership agreement?
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In a partnership, what is the role of a limited partner?
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What distinguishes a general partner from a limited partner in a partnership?
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What should an entrepreneur as a business developer know?
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What are the drivers of business development activities?
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What is a benefit of using intensive growth strategies?
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According to Serensen (2012), what does the practice of business development depend on?
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Which factor is NOT mentioned as a consideration for an entrepreneur as a business developer?
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What is one of the areas where intensive growth strategies can offer an entrepreneur opportunities?
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What is a key aspect of Business Social Responsibility towards the host community?
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Which right is highlighted as part of Human Rights up-holding in the text?
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What is one of the aspects of Community Responsibility towards Business mentioned in the text?
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What is a role of the Government in ensuring peaceful co-existence between organizations and their environment mentioned in the text?
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What is a measure emphasized in the text as part of principles of fair competition?
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What is highlighted as a way for the media to enhance peaceful co-existence between an organization and its host community?
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What is the purpose of managerial control in business management?
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Which of the following is NOT a traditional control technique mentioned in the text?
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What does a budget audit provide information about?
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What is price discrimination in the context of business profitability?
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What does marketing encompass as a business function?
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At what stage in a business's life cycle does the marketing process begin?
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What kind of financing involves group members contributing a fixed amount individually and giving the entire sum to one person based on a rational basis?
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Which financing method allows entrepreneurs to expand their capital base by partnering with others under a 'deed of partnership' agreement?
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What type of financing involves providing short-term credit to customers by suppliers where payment is made at a future date?
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In which financing method is a property, such as a building, offered as security against a long-term loan?
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Which type of financing involves the franchiser granting exclusive rights to the franchisee for manufacturing, selling, and distributing products using the franchiser's expertise?
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What financing option provides less collateral but typically higher interest rates compared to traditional commercial banks?
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Study Notes
Disadvantages of Sole Proprietorship
- Unlimited liability: the owner is personally responsible for debts
- Limited source of financing
- Inadequate skills and knowledge
- Lack of continuity
Partnership Business
- Association of two or more people with a common goal of profit making
- Partners contribute financial resources and work together to achieve a shared objective
- Types of partners: General partner (involved in day-to-day operations, fully responsible for liabilities) and Limited partner (limited liability)
Formation of Partnership
- Partnership agreement (written, oral, or implied) outlines terms and responsibilities
- Agreement documents financial and managerial contributions and profit/loss sharing ratio
Business Development and Management
- Factors influencing business development: company stage, ownership structure, company size, and management risk profile
- Important considerations for entrepreneurs: competitors, customer profiles, new market opportunities, and SWOT analysis
Drivers of Business Development Activities
- Strategies for growth: market penetration, product development, and market development
- Intensive growth strategies: utilizing internal resources, leveraging economies of scale
Corporate Social Responsibility
- Health and safety care
- Environment stewardship
- Human rights (right to life, freedom, fair treatment, and more)
- Corporate philanthropy and employment provision
- Community involvement and cultural respect
Managerial Control
- Systematic effort to compare performance with predetermined standards
- Budget and performance audits to ensure efficient resource utilization
Increasing Business Profit
- Price discrimination: charging different prices to different customer groups
- Factors contributing to profit growth
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Description
Explore the disadvantages of sole proprietorship, including unlimited liability, limited source of financing, inadequate skills and knowledge, and lack of continuity. Learn about partnership businesses, which involve two or more individuals contributing financial resources and working towards common profit-making goals.
