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
2
Q
describe an entrepreneur
A
someone who takes on the risks of enterprise activity
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
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
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
6
Q
define insolvency
A
a term to describe a firm that cannot meet its financial commitments
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
