1.5 Entrepreneur Flashcards
What are 4 roles of an Entrepreneur?
Leadership
Creating jobs
Reducing risks
Creating opportuties
What is a risk of an entrepreneur?
Going bankrupt and losing personal belongings, and giving up secured source of finance.
What are the rewards of an entrepreneur?
Keeping profit to themselves, Being their own boss, Better time managment.
What are the stages of starting a business?
- Getting an idea
- Getting a plan
- Getting finance
- Marketing
- Getting employees
- Getting stock
What is an intrapreneur?
An employee inside a business that creates new ideas.
What is an advantage of having intrapreneurs?
There are more creative ideas that can make it easier to expand and you may not need as many employees.
What are barriers to entrepreneurs?
Managing finance
Lack of capacity
Political policys
Human resource problems
What is the different with anticipation risk and uncertainty?
With risk you can see the outcome however uncertainty you cannot.
What are 4 key characteristics of an entrepreneur?
Leadership
Passion
Powerful
Confident
What are 4 key skills of an entrepreneur?
Stubborn
Confident
Good communication
Ressiliance
what is Profit maximisation?
When people unethically charge a really high price to make the most profit.
What is Profit satisficing?
Making as much profit you can but ethically.
What are non financial motives?
When people start a business in order to be their own boss or in order to help society.
What are some business objectives?
Survival
Profit maximisation
Sales maximisation
Market share
Cost efficiency
Employee welfare
Customer satisfaction
Social objectives
What is a sole trader and its advantages or disadvantages?
An individual that runs their own business.
Advantages are: Easy to set up, Keep all profit
Disadvantages are: Cant raise finance, less security, Heavy workload.
What is a partnership and its advantages and disadvantages?
Where 2 or more people share a business.
Advantages are: Lower costs, More capital, Can borrow more.
Disadvantages are: Lack of stability, Less power, Selling complications.
What is a private limited company and its advantages and disadvantages?
A business that has only one owner and isn’t on the stock market.
Advantages are: can keep all the profit to yourself.
Disadvantages are: Less sources of finance.
What is a public limited company and its advantages and disadvantages?
A public limited company is one that can sell shares to the public.
Advantages are: External source of finance such as shares.
Disadvantages are: Don’t keep all the profits to yourself.
What is stock market floatation?
When a business first puts their business on the stock market.
What does franchises mean?
When a company allows people to buy a shop and use their brand to sell their goods.
What is a franchisor with its advantages and disadvantages?
A company that sells it shops to people to run.
Advantages are: Get to gain some of the profit, No cost for the company itself.
Disadvantages are: Don’t get all the money.
What is a franchisee with its advantages and disadvantages?
A franchisee is someone who buys a shop of a company to run.
Advantages are: Lower risk, Already has customers, Brand recognition, No advertisement.
Disadvantages are: High start up costs, less creativity, don’t keep profits.
What is a co-operative?
A business that is ran by a group of members.
What is a mutual organisation?
This is a firm that is owned by the customers themselves.
