1.5

Question 1

define entrepreneur

Answer 1

a person who set sup a business, taking on financial risks in the hope for profit

Question 2

define intrapreneur

Answer 2

has all the same characteristics of an entrepreneur but works within a large organisation

Question 3

define risk

Answer 3

the possibility that the business will have a lower than expected profit or loss

Question 4

define uncertainty

Answer 4

when businesses are unable to predict external shocks/future events

Question 5

define entrepreneurial characteristic

Answer 5

The skill, quality or trait of the person starting a business

Question 6

define entrepreneurial motive

Answer 6

the factor that drives a person to start a business

Question 7

define business objecitve

Answer 7

goal or aim business aims to achieve
Specific
Measurable
Agreed
Realistic
Time - Related

Question 8

define opportunity cost

Answer 8

the cost of foregoing the next best alternative

Question 9

define leader

Answer 9

the action of leading a group of people or an organisation or the ability to do this

Question 10

what are the barriers to entrepreneurship

Answer 10

lack of personal finance
financial crisis
risk too great
family commitments
societies barriers (only 29% of entrepreneurs are women)
small businesses pay proportioanlly higher tax than larger firms

Question 11

3 things involved in creating and setting up a business

Answer 11

-Generating a business idea (observation, brainstorming, thinking ahead )
- Spotting an opportunity (changes in society, changes in the economy, market mapping)
- Small budget research (checking out competition)

Question 12

why is entrepreneurialism important to the uk

Answer 12

creates jobs
innovation
expands consumer choice

Question 13

THREE

uncertainties within business

Answer 13

exchange rates
natural disasters
interest rates

Question 14

RRICHS

entrepreneurial characteristics (6)

Answer 14

-risk taking
- resilience
- initiative
- creativity
- hardworking
- self confidence
RRICHS

Question 15

financial motives for starting a business

Answer 15

• PROFIT MAXIMISATION, generating the highest amount of profit possible
  -PROFIT SATISFICING- generating enough money to live a comfortable lifestyle

Question 16

MOFN 4 types

entrepreneurial skills

Answer 16

MANAGING and communicating with people
ORGANISATION
FINANCIAL MANAGEMENT
NEGOTIATING (deals and contracts with suppliers)

Question 17

PESFI

non financial motives for starting a business

Answer 17

independence
flexibility
social reasons
ethical reasons (eg. environmental)
personal challenge

Question 18

business objective examples

Answer 18

Survival/ Profit maximising
Market share (competitive market)
Employee welfare
Social objectives
Customer Satisfaction (common in service industry)

Question 19

Business form definition

Answer 19

The legal structure it takes on in the UK
4 types

Question 20

Define limited and unlimited liability

Answer 20

Limited: The business owner is not personally liable for the business debts
Unlimited:The business owner is personally liable for the business debts

Question 21

Sole trader

Answer 21

1 owner - UL
+ easy to set up , all profits kept, own boss
- unlimited liability, less experience

Question 22

Partnership

Answer 22

2 -20 owners UL
+ more experience and knowledge
+ less pressure
+ no publishing accounts
- UL
- Share profits
- disagreements with partners

Question 23

Private Limited Company (LTD)

Answer 23

Owned by shareholders LL
+LL
+Wider access to capital
+ Choose who to sell shares too
- have to incorporate (costly)
- publish accounts

Question 24

Franchising

Answer 24

Limited companies that licence the right for people to set up identical operation in a new region
+ effective method of growth
+ royalty for franchisor
+ franchisee gets training and support
- franchisee could damage brand