business activity Flashcards

1
Q

what is a meant by business enterprise

A

the formation of a new service or development of a new good or service to be introduced to he market

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2
Q

what is a entrepreneur and what are they responsible for

A

an entrepreneur is a person who sets up a business by taking on the financial risks in hopes hopes of making a profit

they are responsible for bringing together the other factors of production, land, labour and capital, to create a business

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3
Q

what are the rewards to being an entrepreneur

A

the potential personal and financial gains of being an entrepreneur:

be their own boss

flexible working hours

pursue an intrest

earn more money (profit)

greater work life balance

self-esteem from building something new

self satisfaction

provide employment for self and others

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4
Q

the potential personal and financial losses facing an entrepreneur

A

the potential personal and financial losses facing an entrepreneur:

low sales

financial loss of income and money invested

unexpected costs e.g. rent

loss of security

pressure on friends and family

damage to reputation if fail

may lose home

potentially long hours and stress

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5
Q

what are the functions of an entrepreneur

A

they set up a business and the survival of the business depends on their efforts

they have the idea

they take the risks

they have characteristics of an entrepreneur

they invest money into the business

they earn the profits to fund their lifestyle to further invest

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6
Q

why do people want to set up their own business

A

personal ambition - they have always wanted to do it

no work available - to get a job

be their own boss - be in control

to provide service to a local community

interest - the may be passionate about the product or service they provide

use skills learned in previous job

easy to set up - no qualifications required

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7
Q

what are the charachteristics of an entreprenure

A

risk taker

determined

creative

confident

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