chapter 3.1

Question 1

entrepreneur

Answer 1

an individual who has an idea for a business takes the financial risk of starting and managing a new business

Question 2

business plan

Answer 2

a detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal

Question 3

revenue

Answer 3

the amount a business earns from the sale of its product

Question 4

business start ups

Answer 4

a newly formed business, they usually start small but some might grow to become much bigger

Question 5

internal growth

Answer 5

occurs when a business expands its existing operations

Question 6

external growth

Answer 6

is when a business takes over or merges with another business , it is often called integration as one business is integrated into another one

Question 7

takeover

Answer 7

is when one business buys out the owners of another business which then becomes part of the predator business

Question 8

merger

Answer 8

is when the owners of the 2 businesses agree to join their businesses together to make on business

Question 9

horizontal integration

Answer 9

is when 1 business merges with or takes over another one in the same industry at the stage of production

Question 10

vertical integration

Answer 10

is when 1 business merges with or takes over another one in the same industry but at a different stage of production. this could be forward or backward

Question 11

conglomerate integration

Answer 11

is when one business merges with or takes over a business in a completely different industry

Question 12

benefits of being an entrepreneur

Answer 12

independence
able to put down own ideas into practice
may become famous
may be more profitable than having a job

Question 13

limitations of being an entrepreneur

Answer 13

risk, they can fail
capital, have to put down their own money
lack of knowledge

Question 14

characteristics of an entrepreneur

Answer 14

hard working
risk taker
creative 
optimistic 
self confident 
innovative 
independent 
effective communicator

Question 15

why governments support businesses

Answer 15

to reduce unemployment
to increase competition
to benefit society
businesses will grow further

Question 16

how governments support businesses

Answer 16

business ideas and help
premises 
finance 
labour
research