1.5 - entrepreneurs and leaders

Question 1

business

Answer 1

an organisation that exists to provide goods and services on a commercial basis to customers

Question 2

benefits of businesses to society

Answer 2

• creates employment
• drives innovations
• pays taxes
• creates wealth

Question 3

start-up

Answer 3

a new business enterprise formed by one or more entrepreneurs

Question 4

role of an entrepreneur

Answer 4

• spot business opportunities
• take (calculated) risks
• act as a catalyst

Question 5

business idea

Answer 5

the foundation of a start-up, explains why a business has been formed and what the new business is trying to achieve

Question 6

intrapreneur

Answer 6

people with an existing, established business to display the characteristics and traits associated with entrepreneurs

Question 7

business benefits of intrapreneurship

Answer 7

• drives innovation
• provides solutions to problems

Question 8

rewards for enterprise

Answer 8

• profits
• capital gains
• self-esteem
• personal development
• a sense of control
• satisfaction from building something

Question 9

intrapreneurship

Answer 9

entrepreneurial activity by people within a business creating or discovering opportunities

Question 10

characteristics of an entrepreneur

Answer 10

• passionate and visionary
• energetic, driven and resilient
• self-starting and decisive
• calculated risk-taker
• focused
• results-orientated

Question 11

financial motives for starting a business

Answer 11

• profit maximisation = desire to earn substantial rewards, may need to accept losses when business is established
• profit satisficing = sufficient profit, take fewer risks, the trade-off is lower returns, ‘lifestyle’ businesses

Question 12

benefits of being an entrepreneur

Answer 12

• more control over working life
• need for flexible working
• pursue an interest or hobby
• wants to be the boss
• wants rewards for the effort
• change in personal circumstances

Question 13

drawbacks of being an entrepreneur

Answer 13

• occasional loneliness and isolation
• higher responsibility
• financial pressure
• hard work
• strain on family and social life
• higher stress levels
• multi-tasking

Question 14

social enterprises

Answer 14

businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for stakeholders and owners

Question 15

features of a social enterprise

Answer 15

• directly involved in producing goods or providing services
• social aims and ethical values
• self-sustaining

Question 16

SMART

Answer 16

Specifics - a clear statement about what you will do
Measurable - achievement can be checked
Achievable - can attain your target if you work hard
Reachable - the target should be sensible so can be reached
Time-bound - objectives should include a date for achievement

Question 17

franchising

Answer 17

a small business owner buys the rights to sell the goods and services of a large, well-established company

Question 18

franchisee

Answer 18

the small business owner who is buying the rights

Question 19

franchisor

Answer 19

the large business that is selling the rights

Question 20

opportunity cost

Answer 20

the cost of missing out on the next best alternative