1.5 Entrepreneurs And Leaders

Question 1

Entrepreneur

Answer 1

Someone who organises a business venture by combining the other factors of production, namely land, labour snd capital. They task risks to set up a business in the hop of profit/reward

Question 2

Entrepreneurship

Answer 2

The activity of setting up a business, taking on risks, normally in the hole of making a profit

Question 3

Resilience

Answer 3

The ability to recover from difficulties and try again

Question 4

Risk

Answer 4

Something an entrepreneur can essentially plan for. Probabilities of outcomes are known or at least understood or considered

Question 5

1.5.2

Entrepreneurial characteristics

Answer 5

Qualities or traits demonstrated by an individual starting up and running a business

Question 6

Entrepreneurial motive

Answer 6

Factors that drive a person to start a business

Question 7

Ethical stance

Answer 7

In support of a moral belief

Question 8

Home working

Answer 8

Setting up a business from home

Question 9

Independence

Answer 9

A desire to be one’s own boss

Question 10

Profit statisficing

Answer 10

Making enough profit to satisfy the needs of the business owner

Question 11

Social entrepreneurship

Answer 11

Setting up a business and showing concern for social issues

Question 13

1.5.3

Business objectives

Answer 13

A goal/target set by the business in the short/medium term to help achieve its aim/mission

Question 14

Cost efficiency

Answer 14

Minimising costs/expenses/ waste when producing a product or service

Question 15

Customer satisfaction

Answer 15

Is a measurement of how satisfied a customer is with their purchase

Question 16

Employee welfare

Answer 16

Facilities and benefits provided by a business to meet the well-being of the employee

Question 17

Objective

Answer 17

A goal/target set by the business to help achieve its aim/mission

Question 18

Profit maximisation

Answer 18

When the difference between sales revenue snd costs is at its greatest

Question 19

Sales maximisation

Answer 19

An attempt to sell as much as possible in a given period of time

Question 20

Social objectives

Answer 20

A goal to benefit / improve the community

Question 21

Survival

Answer 21

A short-term business objective that aims to keep the business running

Question 22

1.5.4

Franchise

Answer 22

A business buys the rude to trade using the brand/logo/business model of an existing firm in return for a fee/royalty

Question 23

Franchising

Answer 23

A type of business where a business operator allows others to trade under its name

Question 24

Lifestyle business

Answer 24

A business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle

Question 25

Partnership

Answer 25

A type of business ownership/organisation owned by two or more people

Question 26

Private limited company

Answer 26

A small o medium sized business, usually run by the family that owns it. Shares are sold to friends, family, and business associated and it has limited liability

Question 27

Public limited company

Answer 27

A business with limited liability whose shares are publicly traded on the stock market

Question 28

Social enterprise

Answer 28

A business that has aims/ objectives which benefits society and is not for profit/its profits are reinvested into the business / community

Question 29

Sole trader

Answer 29

A business that is owned by one person who has unlimited liabilify

Question 30

Stock market flotation

Answer 30

When a business sell shares publicly on the stock exchange for the first time

Question 31

1.5.5 Opportunity cost

Answer 31

The next best alternative forgone when making a decision

Question 32

Trade-off

Answer 32

A situation where having more of one thing leads to having less of something else

Question 33

1.5.6 Leader

Answer 33

A person who inspires and motivates others to meet objectives