Enterprise

Question 1

What is an Enterprise

Answer 1

A business or organisation that makes money

Question 2

What is an Entrepreneur

Answer 2

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

Question 3

Risks of starting a business

Answer 3

Financial loss
Lack of security
Risk of failure
Managing cash flow

Question 4

Rewards of starting a business (if its successful)

Answer 4

Pursue an interest
Financial reward/gain
Get to be there own boss
Flexible hours

Question 5

Features of entrepreneur

Answer 5

Hard working 
Organised 
Being able to adapted 
Willing to take risks 
Innovative

Question 6

Why do governments support business start ups

Answer 6

To reduce unemployment
To increase competition, this reduces prices and adds more variety
To benefit society, business may create social enterprises
Can grow further, this can make business grow larger and more important
In the future

Question 7

Capital employed

Answer 7

The total value of capital used in a business

Question 8

Why are new business are at a greater risk of failing

Answer 8

Due to the lack of finance
Poor planning
Lack of experience/ decision making skills
Inadequate research

Question 9

Social enterprise

Answer 9

Social enterprises seek to maximise benefits to society and the environment, and the profits are principally used to fund social programs

the main objective is to have a social impact rather than make a profit for their owners or shareholders.

Question 10

How to measure business size

Answer 10

Number of people employed
Value of output
Value of sales
Value of capital employed

Question 11

Limitations to measuring business size

Answer 11

Using automation (less workers)
Firms selling more expensive items
May not sell the same amount of goods each year