Business activity Flashcards
What are the three purposes of business enterprise and entrepreneurship? 
Spotting an opportunity, developing an idea and satisfying customer needs
What are four characteristics of an entrepreneur?
Creativity, risk-taking, determination and confidence.
What are the financial risks and rewards of entrepreneurship?
A risk would be if the business does not succeed, the risk of losing savings to pay off debts.
The reward would be the potential to make a lot of money.
What are the non-financial risks and rewards of entrepreneurship?
A risk would be that the strain of running a business can cause mental and physical illness.
A reward would be independence - being in control of what you do; not being told what to do by others.
What are the five steps involved in developing a business idea?
The idea, the people, market research, finance and competitors
How does a good business plan make the objectives SMART?
Specific – clearly starting what is to be achieved.
Measurable – how to measure the success.
Achievable – targets are possible.
Realistic – targets are appropriate.
Timely – includes a deadline for achieving the targets.
What are all the objectives a good business plan will cover?
Identifying the market
Identifying the resources
Identify the finance needed to start up or grow the business
Achieve the business, aims and objectives
Why does a business plan its activities?
Reduce the risk of failure.
Be as successful as possible.
