Introduction To Enterprise Flashcards
What is enterprise?
Enterprise is another word for an organisation or business managed by one or more individuals who are able to take the initiative to make decisions and take calculated risks.
What resources does enterprise use?
Enterprise uses resources like land, labour, and capital to produce goods and services that people want to buy.
What are the characteristics of enterprise?
The characteristics of enterprise include the ability to be innovative, take initiative, make decisions, and bear the risk of setting up and running a business.
What are the two main types of enterprise?
The two main types of enterprise are business and social.
What is the main aim of a business enterprise?
A business enterprise’s main aim is to make a profit.
What happens to the profits generated by a business enterprise?
Profits generated by a business enterprise are reinvested into the business to grow it further or distributed to its owners/shareholders.
What is a social enterprise?
A social enterprise is an organisation that is started up for social causes for the improvement of society and is not-for-profit.
What is the main aim of a social enterprise?
The main aim of a social enterprise is not to make profits, but to benefit the community.
What happens to the profits made by a social enterprise?
Any profits made by a social enterprise are reinvested into things that benefit the community.
Define ‘Enterprise’.
Enterprise: An organisation or business managed by one or more individuals who are able to take the initiative to make decisions and take calculated risks.
Define ‘Business Enterprise’.
Business Enterprise: An organisation that has profit as its main aim.
Define ‘Social Enterprise’.
Social Enterprise: An organisation that is started up for social cause for the betterment of society.
What is an entrepreneur?
An entrepreneur is a person who starts up a new business or enterprise.
What are key characteristics of entrepreneurs?
Entrepreneurs are self-driven and innovative individuals with new ideas for goods or services.
Define stakeholder.
A stakeholder is an individual, group, or organization with an interest in the activities of a business.
What attributes comprise enterprise capability?
Key attributes include risk-taking, decision-making, innovation, and a positive attitude.
What is risk-taking in entrepreneurship?
Risk-taking involves recognizing the risk of failure while believing in the possibility of high returns.
What is a calculated risk?
A calculated risk is taken with the expectation that potential returns will be significantly higher than possible losses.
Why is decision-making important for entrepreneurs?
Entrepreneurs must use available resources wisely, making decisions that involve risks.
How are decision-making and risk-taking related?
Making a decision can involve many risks, including losing production factors and potential costs.
What is innovation in entrepreneurship?
Innovation can involve introducing new products or spotting opportunities in existing products or services.
What role does a positive attitude play for entrepreneurs?
A positive attitude drives entrepreneurs toward taking risks and overcoming challenges.
Who can be considered stakeholders in a business?
Stakeholders can be internal (directly involved) or external (outside parties that affect or are affected by the business).
What should you do with simple or seemingly inadequate ideas?
Never dismiss an idea as being too simple or not good enough. Always give it a go and find out how you can develop it further.
Who are the main stakeholders in an enterprise?
The main stakeholders include internal stakeholders like employees and owners/shareholders, and external stakeholders such as customers, government, local community, suppliers, lenders, and competition.
Who are employees in an enterprise?
Employees are the people who do the work in an enterprise and earn a living from the operations of a business.
To keep employees happy and productive, an enterprise must provide them with fair wages, job security, and good working conditions.
What do owners/shareholders want from an enterprise?
Owners and shareholders want the business to grow and make profits. Healthy profits and growth are important to attract further investment.
