1.5 Entrepreneurs and Leaders

Question 1

What are the characteristics of an entrepreneur?

Answer 1

• self confident
• self determination
• being a self starter
• judgement
• commitment
• perseverance
• initiatives

Question 2

What are the skills required by an entrepreneur?

Answer 2

• financial management
• hr management
• organising
• negotiating
• decision making
• IT
• communication

Question 3

What are the 2 financial motives?

Answer 3

• profit max
• profit satisficing

Question 4

What are non financial motives?

Answer 4

• Ethical stance
• social enterprise
• independence
• home working

Question 5

What is an entrepreneur?

Answer 5

Spots business opportunity and sets up and runs a business, whilst being willing to take risks in order to benefit from the potential rewords

Question 6

What are the roles of an entrepreneur?

Answer 6

• Creating and setting up a business
• running/expanding
• intrapreneurship
• anticipate risks and uncertainty
• barriers to entrepreneurship

Question 7

What is an intrapreneur?

Answer 7

Employees who use entrepreneurial skills without risking their own money

Question 8

What is limited liability?

Answer 8

When the owner and business are separate legal entities (incorporated)

Question 9

What are the advantages of a sole trader?

Answer 9

• easy to set up
• quick decision making
• less capital needed
• taxed differently
• all profits kept
• independence

Question 10

What are the advantages of a partnership?

Answer 10

• Easy to setup
• less capital needled per person
• information won’t be public
• variety of skill/shared workload

Question 11

What are the advantages of an Ltd?

Answer 11

• limited liability
• raise share capital
• can employ managers

Question 12

What are the advantages of a Plc?

Answer 12

• limited liability
• easy to raise capital
• better chance of getting a loan
• easier to grow and expand

Question 13

What are the advantages of a franchise?

Answer 13

Franchisor
- choose who to employ
- trust
- expansion
- royalty payment

Franchisee
- reduces risk
- know local market
- business opportunity
- free training/ marketing

Question 14

What are the disadvantages of a sole trader?

Answer 14

• unlimited liability
• difficult to raise finance
• no one to take over for holidays or sickness

Question 15

What are the disadvantages of a partnership?

Answer 15

• unlimited liability
• disagreement
  -> control, profit share, withdrawal

Question 16

What are the disadvantages of an Ltd?

Answer 16

• accounts of the company are made public
• more difficult and expensive to set up

Question 17

What are the disadvantages of a Plc?

Answer 17

• expensive
• has to prepare for annual accounts
• annual accounts are expensive
• takeover

Question 18

What are the disadvantages of a franchise ?

Answer 18

Franchisee
- initial set up fees
- pay a percentage of profit back to franchisor
- high royalty
- takeover possibilities
- lots of workload
- loss of entrepreneurship

Franchisor
- needs to be consistent
- bad management may damage reputation
- pay for training and marketing
- risk of implementation in unknown location

Question 19

What is social enterprise?

Answer 19

A business that trades for a social and or an environmental impact

Question 20

What is a lifestyle business?

Answer 20

Influencers etc doing what you enjoy and turning it into a business