1.5 - Entrepreneurs & Leaders Flashcards
1
Q
Define Opportunity Cost
A
Opportunity cost is the loss of the next best alternative when making a decision
Due to the problem of scarcity, choices have to be made about how to best allocate limited resources amongst competing wants and needs
2
Q
Define trade off
A
A trade-off occurs when two things cannot be fully achieved
Having more of one thing may mean having less of another
3
Q
Give 4 ways that entrepreneurs can reduce risk
A
- Business plan
- Market research
- Training staff
- Diversification
4
Q
What is the role of an entrepreneur
A
- Creating and setting up a business
- Running and expanding/developing a business
- Innovation within a business (intrapreneurship)
- Anticipating risk and uncertainty in the business environment
- Barriers to entrepreneurship
5
Q
What is intrapreneurship
A
A system within a company or organization that allows employees to act like entrepreneurs. E.g. taking initiative to develop innovative products or services.
