Enterprise

Question 1

What is a privately owned business?

Answer 1

-Owned by founders, or their families, or by a small group of investors whose shares in the company are not publicly traded

Question 2

Define crowdfunding?

Answer 2

• Internet-based scheme
• Allows people to raise money through sharing their business idea to get started, such as manufacture of a new product
• Investors lend money to projects that they believe are viable.

Question 3

What are loans and grants?

Answer 3

• Money provided by the government to start-up or continue/maintain businesses.
• Loans need to be paid back, whereas grants do not.
• An example of this would be tax relief on their investments.
• Not all businesses are sucessful
• Overall, has a high potential to boost economy and provide future employment

Question 4

What are not-for-profit organisations?

Answer 4

-They reinvest all the profits back into the business for the benefit of all involved.