POB questions Flashcards
what is an entrepreneur
a person who undertakes risk involves in the establishing and running of a business in hopes of making a profit
list 3 adv and disadv of an entrepreneur
ADV
-own boss
- get all profit
-flexible
DISADV
-unlimited liability
-make a loss
- all work is done by you
what are the functions of an entrepreneur
conceptualize- all the ideas the business will offer
planning- creating a well-structured plan as to the goals and steps too achieve the goals
accessing funds- finding funds to develop new products and start up the business
organizing- set up the business, employing workers and provide the products/ services
operating the business- run the business
evaluating the performance of the business- examine how well the business is doing
what are characteristics of an entrepreneur
-to be creative
-flexible
-goal oriented
what are the roles of an entrepreneur in economic development
- collaborating- bringing people, businesses and recourses together to achieve shared goals
-providing goods and services to citizens
-creating jobs - earning foreign exchange
why would one want to start up a business
- financial independence- not working for anyone
- self-fulfillment- doing something that makes you happy
-increased income- being able to make more money than working for someone
what are the steps in starting up a business
-conceptualizing
-research
-identifying resources
-creating a business plan
-Acquistion of funds
- operation of business
what is a business plan
a business plan is a formal written document for owners and stakeholders
what are the elements of a business plan
- executive summary-it’s a brief overview of the features of a business plan
-operational plan - gives important details about the business and how it will run
- business opportunity- a description of business product and services
- marketing plan- describing the market research carried out
-financial forecast- description of finance predication
- expansion- indicating future plans
what is primary research
gathering info from primary sources using your own source and carrying out your own research
example; - polls
-surveys
- interviews
what is secondary research
info taken from someone else research
example; - the internet
- books
- magazines
what is a feasibility study
a piece of research to find out whether a business will work out
what are reasons for conducting a feasibility study
- to identify cost
- to find out the possibility
- to identify sources of finances
what are some government regulatory practices
-money and fiscal policies
- consumer protection policy agencies
-
factors that determine the location of a business
- geographical factors- land availability
- raw materials and supply
- transportation
- infrastructure- location close to roads, water, electricity
- labor supply- locate where staffs are
-power- locate somewhere with good power electricity - water
- telecommunications
-market pull
