Section 1.5

Question 1

define entrepreneur

Answer 1

an individual who takes risks to create or start a new business idea

Question 2

define enterprise and some skills it includes

Answer 2

the skills required to make a new idea work
some skills may include:
-risk taking
-showing initiative
-making things happen

Question 3

what is the role of an entrepreneur

Answer 3

-creating a new business idea
-running and expanding a business
-intrapreneurship

Question 4

define business

Answer 4

any organisation that makes goods or provides services

Question 5

overtrading

Answer 5

refers to the situation where a business expands at a rate that cant be sustained by its capital base

Question 6

mission statement

Answer 6

communicates the coorporate aima of the firm to the stakeholders

Question 7

unlimited liability

Answer 7

owner is personally resposnible for the depts of the business (may have to sell personal things in order to repay debts)- sole trader and partnerships

Question 8

limited liability

Answer 8

Legal duty to pay the debts of business stays within business itself (owners and shareholders only loos what they put in)- ltd and plcs

Question 9

sole trader

Answer 9

when individuals set up a business on there own (unlimited liability)

Question 10

partnership

Answer 10

a business made up og between 2-20 owners

Question 11

private limited company

Answer 11

owned by shareholders and the owners can place restrictions on who shares are sold to in the future (Ltd)

Question 12

public limited company

Answer 12

owned by shareholders but unlike ltds restrictions cant be placed on the sale of these shares as the shares of these companies are sold on the stock exchange (plc)

Question 13

business objectives

Answer 13

medium to long term goals established to coordinate the business that help the business meer overall aim/objective

Question 14

franchise

Answer 14

occurs when one business (franchisor) sells the right to use and sell its products/ services to another business/ person (franchisor)

Question 15

franchisor

Answer 15

sells the right to the product in return for and initial fee and a percentage of the franchisees turnover

Question 16

franchisee

Answer 16

recieves the right to the name and the systems used by the franchisor- may incude access to materials and training

Question 17

social enterprise

Answer 17

type of business that claims “to do good” but good for whom is never stated

Question 18

life style business

Answer 18

businesses are creted based on the needs of the entrepreneur

Question 19

innovation

Answer 19

coming up with new ideas and bringing them to the market

Question 20

geographical mapping

Answer 20

plotting on a map the locations of all exisiting businesses in your market, in order to show where competitors are

Question 21

market map

Answer 21

grid plotting where each exisiting brand sits on scales based on 2 important features of a market

Question 22

intrapreneur

Answer 22

personal characteristics of an entrepreneur but works within a large company

Question 23

oppurtunity cost

Answer 23

the cost of missing out on the next best alternative when making a decision