entrepreneurial motives and characteristics

Question 1

what are the characteristics of entrepreneurs

Answer 1

creativity, hard work, resilience, initiative, self confidence

Question 2

what are the 5 roles of an entrepreneur

Answer 2

1. creating
2. running
3. innovation
   4.barriers
4. anticipation

Question 3

what are the 5 entrepreneurial skills

Answer 3

1. communication
2. team working
3. problem solving
4. numeracy
5. IT literate

Question 4

define profit maximisation

Answer 4

aiming to make highest amount of profit

Question 5

advantage of profit maximisation

Answer 5

larger wages

Question 6

disadvantage of profit maximisation

Answer 6

dividends will be larger on shares

Question 7

define profit satisficing

Answer 7

making just enough profit to keep the business moving plus another aim simultaneously

Question 8

list the 5 non financial motives for setting up a business

Answer 8

indepence
flexibility
ethical reasons
social purpose
personal challenge

Question 9

define business form

Answer 9

the legal structure that it takes

Question 10

define limited liability

Answer 10

the owner has a separate legal identity from the business and is not liable for debts.

Question 11

define unlimited liability

Answer 11

the business and the owner are one legal entity so their personal assets are at risk.

Question 12

define sole trader

Answer 12

business owned by one owner, can employ but will not be in control.

Question 13

pro’s of a sole trader

Answer 13

easy to set up
make own decisions

Question 14

con’s of a sole trader

Answer 14

unlimited liability
difficult to raise money

Question 15

define partnerships

Answer 15

2 to 20 partners share risks costs and responsibilities and profits

Question 16

pro’s of partnership

Answer 16

profits go to partners
range of skills

Question 17

con’s of partnership

Answer 17

unlimited liability
disagreements

Question 18

define Ltd

Answer 18

can expands and grow by selling more shares giving business more capital

Question 19

who can and cannot by shares in Ltd

Answer 19

family and friends can buy and they can choose who buys shares
shares cannot be bought by the public

Question 20

pro’s of Ltd

Answer 20

limited liability
can employ managers to run the business

Question 21

con’s of Ltd

Answer 21

accounts of company cant be private
more complex to set up

Question 22

define Plc

Answer 22

once an Ltd has grown it needs further investment which it cannot currently get

Question 23

who can buy shares in a Plc

Answer 23

anyone normally shares floats on the stock market

Question 24

pro’s of Plc

Answer 24

raise large amounts
limited liability

Question 25

con’s of Plc

Answer 25

at risk of take overs
loss of ownership