Establishing A Business(Chapter 3

Question 1

Who is an Entrepreneur?

Answer 1

Is a person that takes calculated risk in starting a business ventures showing vision and creativity, organised factor of production and contribute to start up capital.

Question 2

What is Entrepreneurship

Answer 2

Is the process of taking calculated risk in starting up a business that ventures in showing vision and creativity, organised factor of production and contribute to start up capital.

Question 3

Why would an individual want to establish a business?

Answer 3

To be their own boss
To fulfill their dreams
To maximize profits
To be financial independence or stable
To choose their working hours
To create employment

Question 4

Reasons why an individual would create a Business Plan?

Answer 4

To attract potential investors
To source financing
To guide the operation of the business when making decisions
To ensure that careful research is conducted into the Feasibility of the business
To ensure the business follow all the rules and regulations

Question 5

What is a Feasibility study?

Answer 5

Is a report that investigates whether a new business idea is worthwhile

Question 6

What are Primary Sources?

Answer 6

Are first hand data that is gathered from the original source

Question 7

Examples of Primary Source

Answer 7

Questionnaire
Interview
Suvery
Sampling

Question 8

What are Secondary Sources?

Answer 8

Is information that has already been documented so that it can be analysed for market research

Question 9

Examples of Secondary Source

Answer 9

Books
Newspaper
Social media
Websites

Question 10

What is Collateral?

Answer 10

Is anything that can be used as payment for a loan if the debtor fails to make a regular payment

Question 11

Types of Collateral

Answer 11

Houses
Title deeds to land and building
Money
Jewelry
Motor vehicle.
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