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Business Flash Cards > 1.5 Entrepreneurs > Flashcards

1.5 Entrepreneurs Flashcards

1
Q

What are the 4 Factors of Production

A

Land, Labour, Capital and Enterprise

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2
Q

What is Enterprise (Factors of Production)

A

Role of the entrepreneur is to bring together the other 3 (FoPs) to make a profit

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3
Q

Entrepreneur definition

A

Someone who has a business idea and develops it
Takes risks
Takes the rewards when successful
Takes the losses when it fails

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4
Q

Innovation definition

A

Improving of existing products/service/system/process and the introduction of something better

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5
Q

Stages of Starting a Business

A

Idea
Research
Planning
Financing
Location
Resources
Launch

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6
Q

Areas of the Business a Entrepreneur can be Involved in to Expand a Business in the Beginning

A

Financial Management
Administration
Marketing
Purchasing
Managing People
Production

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7
Q

Barriers to Entrepreneurship

A

Lack of Finance
Lack of of Entrepreneurial Capacity - Skills, Experience and Knowledg
Becoming an Employer - Increased Responsibilities
Legal Barriers
Cost of Compliance
Lack of Ideas
Fear of Failure
Aversion to Risk
Unsupportive Environment

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8
Q

Intrapreneur Definition

A

An employee who is tasked with developing an innovative idea or project within a company

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9
Q

Why are Intrapreneurs Important

A

Drive innovation
Provides the opportunity for self-actualisation (employees reaching their full potential)
Create opportunities for business growth/development
Increase job satisfaction
Increased motivation

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10
Q

Entrepreneurs Characteristics and Skills

A

Characteristics:
Self-confidence
Determination
Self-starting
Judgement
Commitment
Perseverance
Initiative

Skills:
Organising
Financial management
Communication
Managing people
Decision making
Negotiating
IT skills

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11
Q

Motives for setting up a business

A

Be their own boss
Earn their own money/profit
Social reason
Want to hand over something to their children
Work more ethically
Flexible hours or location

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12
Q

Financial Motives

A

Profit maximisation
Profit satisficing

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13
Q

Aim definition

A

What a business what to achieve in the long term

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14
Q

Objective definition

A

Gorals or ar gets a business sets in order to meet their goal

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15
Q

Common Objectives

A

Survival
Profit maximisation
Sales maximisation
Market share
Cost efficiency
Employee welfare
Customer satisfaction

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16
Q

What does SMART stand for

A

Specific
Measurable
Agreed
Realistic
Time-specific

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17
Q

Liability definition

A

Legally responsible for something

18
Q

Limited liability definition

A

An entrepreneurs risk is limited
Personal assets cannot be used to pay business debts
Only liable for the amount of money that you have invested in the business

19
Q

Unlimited liability definition

A

Entrepreneur risks their own personal asset
Personally liable for meeting the financial debts on the business

20
Q

Sole Trader definition

A

A person that sets up a company on their own
Only owner
Unlimited liability

21
Q

Pros and cons of a sole trader

A

Pros:
Quick and easy to set up
Make own decisions
Keeps the profits

Cons:
Risk of unlimited liability
Works long hours
High level of responsibility

22
Q

Partnerships definition

A

A type of business that has 2 or more owners
Decide to set up and run a business between them.

23
Q

Pros and cons of a partnership

A

Pros:
Usually quick and eas to set up
Shared decision making
Shared responsibility for debts

Cons:
Can involve long hours
Can be conflict between owners
Risk of unlimited liability

24
Q

Deed of a Partnership definition

A

Contract/agreement that outlines what their roles are and how the business will be run
Everyone is quality responsible for the debt

25
Q

Definition of Limited Partnersip

A

Some partners provide capital but they do not take any part in the management of the business

26
Q

Definition of Unincorporated

A

When a business is not legally registered as a company which means the business and the owner are seen as having the same identity

27
Q

Definition of a Private Limited Company (Ltd)

A

It has limited liability
Can be small or large

28
Q

Definition of Incorporated business

A

The process by which a new or existing business registers as a limited company and they announce themselves as a separate entity to the business

29
Q

Pros and cons of a Private limited company

A

Pro - owners have limited liability, gives individuals the opportunity to be thier own boss, New shareholders need to be invited which protects the business
Cons - often more paperwork, in some instances other people are able to view the businesses financial information

30
Q

Definition of Public Limited Company (PLC)

A

Businesses which are able to sell shares on the stock exchange
Anyone can buy stocks from the stock market

31
Q

Definition of Shares

A

A proportion of the business that someone owns
Gives them a proportion of profits and decision making power

32
Q

Pros and Cons of a Public limited company

A

Pros - raising capital through public issues of shares, widening the shareholder base and spreading risk, growth and expansion opportunities
Cons - more regulations to abide by, higher levels of transparency required, ownership and control issues

33
Q

Definition of Stock Marker Flotation

A

When a business goes public
There is an initial public offering which is where shares are released for the first time

34
Q

Definition of Franchise

A

Chains/branches of a business

35
Q

Definition of Franchisor

A

Gives permission for an entrepreneur to use their business name, logo and method of working
Provide training, materials, marketing tools and other support

36
Q

Definition of Franchisee

A

They pay the franchiser an initial fee to be able to be allowed to operate under the brand name

37
Q

Definition of Royalty Payment

A

Money which is paid to the franchisor by the franchisee

38
Q

Definition of Opportunity Costs

A

Cost of choosing the next best alternative

39
Q

Definition of Trade off

A

When you cannot have two things at the same time so you have to compromise

40
Q

Definition of Overtrading

A

When a business expands faster than its capital allows

41
Q

What hold backs entrepreneurs

A

Adapting the mindset
Stress
Sharing ownership
Lack of leadership qualities/experience

42
Q

How entrepreneurs overcome difficulties

A

Delegation and trust
Earning respect
Maturity and experience
Education
reducing stress

Business Flash Cards (19 decks)

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