entrepreneurs and basics

Question 1

Define Entrepreneur

Answer 1

someone who sets up a business. They own the business and it would not exist without them

Question 2

why do people set up businesses

Answer 2

-financial motives
-ethical reasons
-independence(flexibility and be your own boss)
-work from home

Question 3

define profit satisficing

Answer 3

to make enough money to maintain their interest in the business

Question 4

define profit maximising

Answer 4

to make as much money as possible

Question 5

roles of an entrepreneur

Answer 5

• creating and setting up a business (market research, sourcing finance)
• running and expanding/developing a business(effective recruitment ,sourcing raw materials)
• business innovation(improve products[R&D] or enhance customer service)

Question 6

skills of an entrepreneur

Answer 6

• communication
• team working
• problem solving
• organisation

Question 7

characteristics of an entrepreneur

Answer 7

• creativity
• hard working
• resilience
• initiative
• risk taking

Question 8

intrapreneurship

Answer 8

encouraging workers to be innovative

Question 9

why do so many businesses fail?

Answer 9

• being risk averse
• fear of failure
• legal barriers
• lack of entrepreneurial capacity(willing to start up a new business)

Question 10

income statement order

Answer 10

revenue
cost of sales
gross profit
expenses
operating profit
exceptional items
tax
net profit
dividends
retained profit

Question 11

formula for gross profit

Answer 11

revenue - cost of sales

Question 12

formula for operating profit

Answer 12

revenue - cost of sales - expenses