1.3 enterprise & size Flashcards
1
Q
entrepreneur
A
is a person who organizes, operates and takes risks for a new business venture.
2
Q
advantages of entrepreneur
A
- independent
- use own ideas
- famous and successful
- profitable w higher income
- use of personals skill and interest
3
Q
disadvantages of entrepreneur
A
- risk of fail
- capital
- lack of knowledge
- opportunity cost
4
Q
characters of successful entrepreneur
A
Risk-taker Creative Optimistic Self-confident Innovative Independent Effective communicator Hard-working
5
Q
business plan
A
A business plan is a document containing the business
objectives and important details
about the
operations, finance and owners of the new business.
6
Q
business plan contains
A
- description of the business: objectives and brief summary and history
- products and service: what the business sells in detail
- the market: what market they are targeting
- location and distribution channel
- organizational structure
- financial information
- business strategy
7
Q
why is business plan necessary
A
- reduces risk
- helps gain finance
8
Q
why governments support startup
A
- reduce unemployment
- increase comp: more choices
- increase output
- benefit society: more opportunity and social shit
- help grow
9
Q
how can government help startup?
A
- idea and help: support sessions
- premises: low-cost land
- finance: loan at low-interest rate grant to depressed
- labour: trained
- research: university reasearch unit to business
10
Q
who and why is it useful to measure business size?
A
- investor: decide where to invest
- government: taxation
- competitors: size and importance (market share)
- workers: how many people to work w
- bank: loans
11
Q
how to measure business size
A
- ppl employed
- the value of output
- value sales
- capital employed
12
Q
people employed:
A
adv: -easy to calc and compare dis: -capital intensive -calc part-time workers
13
Q
value of outpiut:
A
adv: -common in the same manufacture industry disv: -relies on value of sales -less output more revenue (exp shitz) -diff shit value diff
14
Q
value of sales
A
adv:
-retailers selling similar shit
disv:
- misleading while measuring different business
