2.1.2 Enterprise Flashcards

1
Q

what is enterprise

A

involves identifying new business opportunities, and then taking advantage of them. there’s always risk of failure, but reward for a successful enterprise activity is profit

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2
Q

describe an entrepreneur

A

someone who takes on the risks of enterprise activity

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3
Q

what qualities will a successful entrepreneur be likely to have

A
  • ability to think ahead
  • initiative
  • drive and determination
  • decisiveness
  • networking skills
  • leadership skills and powers of persuasion
  • a willingness to take calculated risks
  • ability to plan carefully
  • ability to learn from mistakes
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4
Q

what are the rewards of risk taking

A
  • A sense of satisfaction
  • Building something
  • Being in control
  • Making that first sale
  • Opening a new location
  • Employing more people
  • Getting an industry award or good publicity
  • Getting great feedback from customers
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5
Q

give reasons why a business might fail

A
  • lack of demand for product
  • wrong location
  • poor cash flow
  • bad management
  • cost of running business are too high
  • competition
  • losing customers
  • poor quality products/services
  • unfavourable exchange rates
  • poor customer service
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6
Q

define insolvency

A

a term to describe a firm that cannot meet its financial commitments

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7
Q

factors affecting location of business

A
  • nature of product
  • cost of location
  • access to materials
  • access to customers
  • availability of labour
  • climate
  • physical geography
  • transport and infrastructure
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