enterprise, business growth and size Flashcards
1
Q
characteristics of entrepreneur
A
- innovative/creative: come up with new ideas
- self confident: strong belief in your abilities and ideas
- risk taker: take measured risks
- determined: does not give up easily and is hard working
- result driven: wants to achieve results
- leader: depend on yourself while including others
- multitalented/independent: should be able to perform many tasks on your own
- initiative: able to develop good business plan to achieve business objectives
- good communicator/networker: good relationship with your stakeholders
2
Q
advantages of being an entrepreneur
A
- independence: able to choose how to use time and money
- may become rich/successful/famous if business grows
- makes use of personal interests and skills
3
Q
disadvantages of being an entrepreneur
A
- may fail without proper planning or with wrong decisions
- lack of knowledge and experience while operating a business
- have to put their own money
4
Q
why do governments support entrepreneurs
A
- increase in employment as create jobs
- more taxes paid to government
- if business becomes famous so does country
- tourism for business increases taxes and GDP
- more choices to people and more competition encourages creativity
- increased quality products
- helps keeps prices stable
5
Q
how do governments support entrepreneurs
A
- tax holidays so no tax for large periods of time
- special enterprise zones where premises are sold at a very low rate
- training and up skilling provided
- research centres
- finance like money provided at a low interest rate
6
Q
what does a business plan entail
A
- name
- type of business organisation
- forecast profit
- objectives of the business
- market
- advertising and promotion
- expansion plans
- executive summary
7
Q
what does a business plan entail
A
- name
- type of business organisation
- forecast profit
- objectives of the business
- market
- advertising and promotion
- expansion plans
- executive summary
8
Q
why is a business plan important
A
- helps persuade banks to loan money
- provides targets and goals
- acts as a checklist to monitor progress
- careful planning reduces risk
9
Q
who wants to measure business size
A
- government
- investors
- banks
- workers
- competitors
10
Q
why do businesses want to grow
A
- increase market share
- earn higher profit
- achieve better status
- get economies of scale
11
Q
how to measure the size of a business
A
- value of labour employed
- value of capital employed
- value of sales
- value of output
- market share
12
Q
limitations of different ways of measuring business size
A
- some firms may be capital intensive
- some firms may be labour intensive
- is not high other ways
- producing more may not mean selling more
- is not high other ways
13
Q
ways of internal growth
A
- developing new products
- opening a new branch paid for by profits from existing business
- finding a new market for products
- increasing output
14
Q
ways of external growth
A
- merger
- take over
15
Q
advantages of horizontal integration
A
- reduces competition
- economies of scale
- higher market share
