Semester Exam 2019 rivision Flashcards
Explain two behaviours that distinguish an entrepreneur from a manager
An entrepreneur is primarily focused on innovation and risk-taking, often identifying and creating new opportunities to develop unique products or services. They thrive on uncertainty and are willing to take financial and personal risks to pursue their vision. In contrast, a manager is more focused on maintaining and optimizing existing operations, ensuring stability, and achieving organizational goals through effective resource allocation and team coordination. While entrepreneurs drive change, managers sustain and improve established systems.
define and explain why social enterprise is important in our community
A social enterprise is a business that aims to address social, cultural, or environmental issues while generating revenue to sustain its operations. Unlike traditional businesses, its primary focus is on achieving a positive impact rather than maximizing profits for owners or shareholders. Social enterprises are vital for communities as they create solutions to pressing problems, such as unemployment, inequality, or environmental degradation, while empowering people and fostering social inclusion. For example, Thankyou, an Australian social enterprise, sells products like bottled water and uses its profits to fund clean water and sanitation projects in developing countries.
Identify the three conditions under which a person is classified as unemployed
Aged 15 years or over
Not employed
Taking active steps to find work
Available to start work
Outline one advantage and one disadvantage of being the sole trader of a business
One advantage of being a sole trader is that you have full control over all decisions and profits, allowing you to run the business as you see fit without needing to consult others. However, a major disadvantage is that you have unlimited liability, meaning you are personally responsible for all debts and risks, which could impact your personal assets if the business fails.
outline one advantage and one disadvantage of buying a franchise
One advantage of buying a franchise is that it provides a proven business model with established branding, support, and training, reducing the risks associated with starting a new business. However, a disadvantage is the lack of full control, as franchisees must follow strict guidelines and pay ongoing fees or royalties to the franchisor, limiting their independence and profitability.
Identify and explain two enterprising behaviours that can help employees be effective in their work
Two enterprising behaviors that can help employees be effective are initiative and adaptability. Initiative involves proactively identifying opportunities or solving problems without waiting for instructions, which can lead to increased efficiency and innovation. Adaptability allows employees to adjust to changing circumstances or challenges, ensuring they remain productive and resilient in dynamic work environments. Together, these behaviors enhance problem-solving and support organizational success.
explain two reasons why it is important to create a business plan before starting up a business of your own?
Creating a business plan is essential because it provides a clear roadmap for your business, outlining goals, strategies, and the steps needed to achieve them. This helps ensure you are prepared for potential challenges and can make informed decisions. Additionally, a business plan is crucial for securing funding, as it demonstrates to investors or lenders that you have a well-thought-out plan and understand your market, increasing their confidence in your business’s success.
distinguish between a need and a want. give an example of each
A need is something essential for survival or basic well-being, such as food, water, shelter, or healthcare. For example, having access to clean drinking water is a need.
A want, on the other hand, is something desirable but not essential for survival, often linked to comfort or luxury. For example, buying a designer handbag is a want.
Define three stages of production using one example
The three stages of production are primary, secondary, and tertiary, which describe how goods and services are created and distributed.
- Primary Stage: This involves the extraction or harvesting of raw materials. For example, a farmer grows and harvests wheat.
- Secondary Stage: This focuses on manufacturing or processing the raw materials into finished goods. In this case, the wheat is milled into flour.
- Tertiary Stage: This is the distribution or selling of the finished goods or services to consumers. For instance, a bakery uses the flour to make bread and sells it to customers.
