1.5 entreprenaurs

Question 1

What is an entrepreneur?

Answer 1

An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success

Question 2

What are some roles of an entrepreneur ?

Answer 2

• coordinate resources
• make decisions
• take risks

Question 3

What is intrepreneurship ?

Answer 3

Intrapreneurship refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business

Question 4

What is the benefits of intrapreneurship?

Answer 4

• tap into creative potential
• create a culture that generates ownership and engagement
• offer incentives and rewards to successful products

Question 5

What are some barriers to entrepreneurship?

Answer 5

Entrepreneurial capacity
- Access to finance
- Lack of training
- Fear of failure

Question 6

What is the difference between risk and uncertainty?

Answer 6

Something an entrepreneur can plan for - risk
Caused by unexpected factors outside entrepreneurs control - uncertainty

Question 7

What are the skills of an entreprenaur ?

Answer 7

Communication
Team working
Problem solving
Numeracy

Question 8

What are the characteristics of an entrepreneur ?

Answer 8

Creativity
Hard working
Resilience
Initiative

Question 9

What are the financial reasons for setting up a business?

Answer 9

profit maximisation
profit satisficing

Question 10

What are non financial reasons for setting up a business?

Answer 10

Ethical stance
Social entrepreneurship
Independence
Home working

Question 11

What are some business objectives?

Answer 11

Sales maximisation
Market Share
Cost efficiency
Employee Welfare
Customer Satisfaction
Social objectives

Question 12

What is a sole trader ?

Answer 12

A business that has a single owner

Question 13

What is the advantages and disadvantages of being a sole trader?

Answer 13

Easy and inexpensive to set up
The owner has complete control over the business
All profits belong to the owner
Simple tax arrangements

Unlimited liability, meaning the owner is personally responsible for any debts the business incurs
Limited access to finance and capital
Limited skill sets

Question 14

What is a partnership?

Answer 14

Two or more people join together to form a business

Question 15

What is the advantages and disadvantages of being a partnership?

Answer 15

Easy to set up and inexpensive
Shared responsibilities and decision-making
More skills and knowledge are available
Increased access to finance and capital

Unlimited liability
Potential for disputes between partners
Profits are often shared equally, regardless of the contribution
Difficult to transfer ownership

Question 16

What is a private ltd company?

Answer 16

The ownership of the business is broken down into a specified number of shares

Question 17

Advantages and disadvantages of a private
ltd?

Answer 17

Limited liability, meaning the owners are not personally responsible for the company’s debts
Access to greater finance and capital
Easier to transfer ownership
Can have a professional image and reputation

More expensive and time-consuming to set up
More complex legal requirements and regulations than sole traders
Annual financial reporting and auditing are required
Shareholders have little control over the company as the founder usually imposes their agenda

Question 18

What is franchising ?

Answer 18

Franchising is a business model where an individual (franchisee) buys the rights to operate a business model, branding, and support from a larger company (franchisor) in exchange for an initial lump sum plus ongoing fees

The franchisee operates the business under the
franchisor’s established system and receives training, marketing support, and ongoing assistance

Question 19

What is social enterprise?

Answer 19

A social enterprise is a business that has the primary purpose to create social or environmental impact (in addition to generating profits)

Profits are usually reinvested back into the business or used to create positive social change or address an environmental issue

Question 20

What is a lifestyle business?

Answer 20

Lifestyle businesses are typically small, owner-operated businesses that prioritise a specific lifestyle or personal interest of the owner over profits or growth

Question 21

What is a public limited company (PLC)

Answer 21

Seek to raise capital by selling shares to public on stock exchange

Question 22

What are the benefits of becoming a PLC ?

Answer 22

access to capital
shared risks
increased liquidity
extended decision making
public profile

Question 23

What is an opportunity cost?

Answer 23

Opportunity cost is the loss of the next best alternative when making a decision

Question 24

What is a trade off?

Answer 24

A trade-off occurs when two things cannot be fully achieved
Having more of one thing may mean having less of another

Question 25

How do you transition from entrepreneur to leader?

Answer 25

Need to delegate
Trusts
Listening
Develop emotional intelligence
Open mind
Less reactive