Chapter 1.1 Starting a Business

Question 1

What is Decision making

Answer 1

It is a multi step approach whereby a selections is made between a range of different alternatives.

Question 2

Key decisions to consider when establishing a business

Answer 2

• Personal suitability to start and operate a business
• Where to look for inspiration of business idea
• The business concept/type of business

Question 3

Assessment of personal suitability to start a business

Answer 3

• Personal motivations- If the reasons to start a business are valid
• Self appraisal- If the business owner has the personal skills, abilities and personality type to run a business
• Personal and business objectives must be established and classified

Question 4

What are some personal motivations to start a business

Answer 4

• A desire for independence
• Potential wealth and financial independence
• To overcome unemployment

Question 5

Explain a desire for independence when starting a business

Answer 5

It is to be in control and assuming responsibility for decision making, This opens up the opportunity to innovate and problem solve independently.

Question 6

Explain the potential wealth and financial wealth aspect when starting a business

Answer 6

This is because business ownership is often view as a path to wealth

Question 7

Explain a desire to overcome unemployment when starting a business

Answer 7

Starting a business means you establish a means of income through self employment