Why Entrepreneurs May Decide to Buy an Existing Business (Grade 11 NSC Matric Business Studies): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Entrepreneurship definition
Entrepreneurship definition
Setting up business whilst taking financial risks for profit
Business opportunity
Business opportunity
Chance to start a business that will generate income
Advantage: Established infrastructure
Advantage: Established infrastructure
Physical location, equipment, systems already in place
Advantage: Existing customer base
Advantage: Existing customer base
Customers already know, trust, & regularly purchase from it
Goodwill in business
Goodwill in business
Positive reputation & customer loyalty a business has earned
Cash flow definition
Cash flow definition
Money moving in and out of a business
Working capital
Working capital
Money needed for day-to-day operations
Why banks prefer lending to existing businesses
Why banks prefer lending to existing businesses
3+ years financial records show profitability & proven success
Market share
Market share
Percentage of total sales in the industry
Start-up survival rate past second year
Start-up survival rate past second year
Only 1 in 10 start-ups survive past their second year