Enterprise

Question 1

What is enterprise?

Answer 1

The ability to handle uncertainty and deal effectively with change.

Question 2

What is a entrepreneur?

Answer 2

Someone who starts and runs a business and has the responsibility for thee risks involved. In order to do this, a entrepreneur has to be able to manage the 4 factors of production effectively.

Question 3

What are the four factors of production?

Answer 3

1. Land and natural resources
2. Labour
3. Capital, which is any kind of equiptment used in the production
4. enterprise

Question 4

What is oppurtunity cost?

Answer 4

The cost of an activity expressed in terms of the next best alternative, which has to be given up when making a choice. for example, what could an entrepreneur do with their time, expertise and money if they didnt start a business.

Question 5

What are government grants?

Answer 5

Sums of money given to a business for a specific purpose or project. They often contribute to the cost of the project rather than fund the whole thing. Grants do not usually have to be paid back.

Question 6

Motivations behind becoming a entrepreneur?

Answer 6

To escape a uniteresting job
To persue a interest or hobby
To exploit a gap in the market
To market a new/innovative product

Question 7

How important are entrepreneurs to the uk economy?

Answer 7

They can become the big businesses of the future.

Question 8

How can you define a small business?

Answer 8

The EU defines a small business as having less than 50 employees
The value of the business is less than £1.4 million
The value of sales is less than £2.8 million

Question 9

What is The Princes Trust?

Answer 9

The Princes Trust is charity run organisation that helps young people hoping to start a business.