lesson 2 & 3 Flashcards
what are the characteristics of an entrepreneur
Hard worker , persistent , communicator , innovative , risk taker
what does hard worker mean
works long hours under stress
what does persistent mean
whenever they face difficulties they overcome them and stand their ground
what does communicator mean
they are able to motivate their workers and negotiate really well
what does innovative mean
they come up with new and good ideas to help the business
what does risk taker mean
able to take risks that can end them up in jail
what is a business plan
it is document that is made by the Entrepreneur that contains information about the business like it’s name and other details
what are the advantages of a business plan AND explain them
the entrepreneur can apply for a bank loan/ government grant ( if the bank manager finds the business to be successful they’ll give the entrepreneur the money ) and there is a less risk of failure ( as it will help make the entrepreneur take the right decisions )
what are the disadvantages of a business plan AND explain them
it takes time to make a business plan and therefore it can delay the start of a business
there’s a high tutions costs to learn to make one
what are the objectives of a businesses
to increase revenue
to increase profit
to increase value added
to decrease cost
growth and expansion
survival ( to remain in the market )
Have a bigger market share
what’s the formula for revenue
quantity sold x price
what’s the formula for value added
selling price - cost of material
How do you increase revenue
increasing quantity sold ( by advertisement)
charging a higher price ( by increasing quality )
how do you decrease cost
decreasing cost of rent ( by moving to a cheap location)
decreasing cost of salaries ( by using machines )
How do you increase profit
Increasing revenue
Decreasing cost
