Chapter 1- Enterprise Flashcards
0
Q
What is an entrepreneur?
A
These are individuals who have an idea that they develop by setting up a new business and encouraging it to grow.
1
Q
What is an enterprise?
A
The process by which new businesses are formed and new products and services are created and brought to the market.
2
Q
Reasons why a business may fail?
A
- Lack of finance
- Poor infrastructure
- Skills Shortages
- Complexity of regulations
3
Q
What is oppurtunity cost?
A
Oppurtunity cost is the real cost of taking a particular action or the next best alternative
4
Q
Why people may choose to be an entrepreneur?
A
- Long-term low interest rates that make it cheaper to borrow money to start a business.
- A change in the political climate
- Increasing affluence
5
Q
Why do entrepreneurs engage in entrepreneurial activity?
A
- Some to gain more freedom at work
- Most to make money
- Some to sustain a going concern (family business)
- To provide employment for the local community
6
Q
How do the government support an enterprise?
A
- Reducing business taxes and trying to establish and maintain a competitive business tax system
- Reducing the regulatory burden
- Reducing barriers to raising finance
