business test term 1

Question 1

advantages of a partnership

Answer 1

-simple to set up
-minimal paperwork once agreement is set up
-benefits from experience and effort of more than one owner
-more skill
-greater potential to raise finance

Question 2

characteristics of an entrepreneur

Answer 2

-willing to take calculated risk
-adaptable to changes
-able to navigate set backs and challenges
-confidence
-result orientated
-determined
-focused

Question 3

difficulties of going from an entrepreneur to a leader

Answer 3

entrepreneur = new business opportunity and assumes risk
leader=inspires people and motivates them
THE NEED TO DELEGATE
-can be difficult for an entrepreneur who is used to having control over every aspect of the business -finds it hard to let go of authority
COORDINATING MORE PEOPLE
-in a start up- boss knows all staff on personal level
-as business grows, boss may struggle to develop personal relationships but staff still need it
-down to boss to ensure it still happens
-growth requires entrepreneurs to make the change from hands on boss to leader
NEEDS TO DEVELOP MANAGAEMTN SKILLS OF COORDINATION
-LEARNING TO LISTEN
-entrepreneur driven by ideas and visions
-as a leader it’s important to listen to ideas and perspectives of others

Question 4

customer satisfaction main objective

Answer 4

-prioritising the need to ensure that every customer has a positive interaction with the business
-crucial where attracting new customers is costly and losing existing customers is very expensive
-necessary but not sufficient for success
-customer loyalty

Question 5

other business objectives

Answer 5

sales maximisation-growing number of customers without a major focus on costs
-in a rapidly growing market firms may try maximise share of market
survival - sustaining business - start ups