business activity

Question 1

define enterprise

Answer 1

spotting an opportunity to provide a product or service that people are willing to buy

Question 2

define an entrepreneur

Answer 2

An entrepreneur is an individual who has the skills and knowledge to set up and run their own business, and is willing to take risks.

Question 3

define business activity

Answer 3

What the business does to provide its customers with a product / service

Question 4

name 6 characteristics of an entrepreneur

Answer 4

determined, resilient , uses their initiative , creative , organised , responsible

Question 5

define initiative

Answer 5

The ability to use your judgement to make decisions and do things without needing to be told what to do

Question 6

what are the 3 risks?

Answer 6

financial, strained relationships and health

Question 7

what are the 3 rewards?

Answer 7

financial, self satisfaction and independence

Question 8

why do businesses have different objectives?

Answer 8

the type of ownership - some sole traders and partnerships may be happy making a modest amount of profit, whereas larger PLC’s are more likely to want to maximise profit to satisfy shareholders.

type of business - not for profit organisations may focus on social, ethical and service objectives

Question 9

Define Limited Liability

Answer 9

This is when the responsibility for debts the business has is limited to the amount that the shareholder has put in

Question 10

Define Unlimited Liability

Answer 10

The owner risks losing their personal possessions to pay off the debts of the business.

Question 11

name some internal stakeholders

Answer 11

employees
owners
suppliers

Question 12

name some external stakeholders

Answer 12

local community
government
customers