1.5

Question 1

role of an entrepreneur

Answer 1

someone who has an idea and is willing to take a risk, passionate and driven

Question 2

benefits to setting up a business

Answer 2

1.be your own boss, personal satisfaction
2.choose when and where you work

Question 3

what’s the difference between an entrepreneur and a leader

Answer 3

1. Is focused on own goals
2. Motivating and inspiring employees to work together

Question 4

barriers to entrepreneurship

Answer 4

1. Fear of failure
2. Lack of finance

Question 5

Financial motives and non financial

Answer 5

• profit maximisation
• ethical stance, independence

Question 6

Advantages of limited liability and disadvantages

Answer 6

• only liable for what you invest not your own personal assets
• cost may have to pay more taxes and costs more to maintain

Question 7

Private limited company

Answer 7

-Ltd
-limited liability
-Shareholders

Question 8

Intrapeneurship

Answer 8

Activity within a business creating or discovering opportunities which lead to the creation of new parts of the business.

Question 9

drawbacks of being an entrepreneur

Answer 9

Loneliness, financial pressure, strain on family + social life

Question 10

SMART business objectives

Answer 10

S- specific objective so know exactly what to achieve
M- measurable, how far an objective has been achieved
A- achievable
R- relevant to the people responsible for achieving them
T-time bound , set with a time frame realistically

Question 11

Corporate and functional objectives

Answer 11

C- what a business as a whole achieve. (Profit, growth)
F- set for individuals functions ( improve customer satisfaction, survival)

Question 12

Unincorporated and incorporate businesses

Answer 12

Unincorporated = the owner is the business, unlimited liability (sole trader usually)
InCorperated = legal difference between business and owners, owner has limited liability (usually private limited companies)

Question 13

Unlimited liability

Answer 13

Owner is personally responsible for debts and liabilities (car,house)

Question 14

Sole trader and partnership +-

Answer 14

Sole trader (unincorporated) = owns a business on their own
+quick and easy to set up, keep all profit
- unimlited liability , pressure
Partnership (unincorporated) = 2-20 people
+ benefits from different expertise and skills
- unlimited liability , argue

Question 15

Limited company +-

Answer 15

Company is owned by shareholder but run by directors , private limited company is most common , where shares of company are not public.
+ limited liability , easier to raise finance through shares
- big administration costs

Question 16

Public limited company

Answer 16

Shares can be traded on public stock market

Question 17

Franchises +-

Answer 17

A franchisor grants a license (framchise) to another business (franchisee) to allow it to trade using the brand.
+tested, developed brand, advice,support and training.
-expensive

Question 18

Opportunity costs and example

Answer 18

The cost of a choice made in terms of the next best alternative sacrificed.
E.g work leisure = the opportunity cost of not working an extra 10 hours a week is the lost wages.

Question 19

Trade off

Answer 19

Where more of one thing potentially results in having less of another.
E.g less market research (lower costs) = less successful new product.