Enterprise

Question 1

What are the four factors of production

Answer 1

Land, labour, capital, entrepreneurial skill

Question 2

How many employees do SME’s have

Answer 2

Small have less than 50 and medium have less than 250

Question 3

How much is the turnover of an SME

Answer 3

Small is less than 10 million, medium is less than 50 million (euros)

Question 4

Define an entreprenuer

Answer 4

A person who spots an opportunity and shows initiative and a willingness to take risks by starting a business

Question 5

How are business ideas found

Answer 5

Brainstorming, personal experience, business experience, market research

Question 6

What three considerations are made by entrepreneurs

Answer 6

Can they satisfy wants or needs, is there a gap in the market, are we offering a solution to a problem

Question 7

What are the steps in setting up a business

Answer 7

Generating an idea, can the idea add value, market research, creating a business plan, choosing a legal structure, raising finance

Question 8

What activities are involved in developing a business

Answer 8

Generating a customer base, designing a marketing mix, sourcing supplies and managing stock, keeping financial records, following legislation, employing staff

Question 9

What are the financial motives for entrepreneurs

Answer 9

Profit maximization and profit satisficing

Question 10

What are the non financial motives

Answer 10

Ethical stance, social entrepreneurship, independence, homeworking

Question 11

What are the characteristics of an entreprenuer

Answer 11

Spots opportunity, creative, shows initiative, takes risks, thinks positively, hard working, self motivated, decision maker, visionary, enthusiastic, determined and persistent

Question 12

What are the skills required to be an entrepreneur

Answer 12

Communication, numeracy, literacy, information technology, organisation, problem solving and team working

Question 13

What is the primary sector

Answer 13

Businesses that extract natural resources that can then be used by others to produce resources (farming, fishing and extracting minerals)

Question 14

What is the secondary sector

Answer 14

Businesses that turn raw materials into finished goods or components, value is added through the manufacturing process

Question 15

What is the tertiary sector

Answer 15

Businesses that provide services to individuals or other businesses (banking, retail and telecommunications)

Question 16

What is the importance of entrepreneurs and SME’s on businesses

Answer 16

Create competition, supply goods and services, offer specialisms and expertise, buy goods and services

Question 17

How do entrepreneurs and SME’s impact the economy

Answer 17

Provide employment, pay taxes, social benefits

Question 18

Define stakeholders

Answer 18

Anyone with an interest in the actions of a business

Question 19

State all possible stakeholders

Answer 19

Customers, employees, shareholders, government, community, suppliers and financial institutions

Question 20

Why do stakeholders need to be considered when making decisions

Answer 20

To avoid resistance to change

Question 21

Explain the stakeholder mapping system

Answer 21

Stakeholders are plotted, level of interest against power, high for both should be managed closely, low for both should be monitored, High power but low interest should be kept satisfied and low power high interest should be kept informed