Starting A Business

Question 1

Give two reasons why someone may want to start a business

Answer 1

Be their own boss/make their own decisions
Keep the profit made
May be unemployed
Gap in the market
Provide a service for other/yourself and get satisfaction
Make money
Interest or hobby may become a business

Question 2

What is an entrepreneur?

Answer 2

Someone willing to take the RISKS involved in starting a business, they believe that the REWARDS of starting a business are worth the RISKS and COSTS involved.

Question 3

What is a social enterprise?

Answer 3

A business setup to help society rather than making a profit

Question 4

How do social enterprises make money?

Answer 4

Selling products and other services

Question 5

What is a business objective?

Answer 5

A target that an organisation or person can work towards achieving within a timed period eg the business wants to make 5% profit within the first three months of the business

Question 6

What should objectives be?

Answer 6

S
M
A
R
T

Question 7

What does SMART stand for?

Answer 7

Specific
Measurable
Achievable
Realistic
Time related

Question 8

What are the six main objectives of a business?

Answer 8

1. Survival-to do this the business needs to make profit
2. Provide a good product or service
3. Market share-they will have great power over their competitors, suppliers and consumers
4. Customer Satisfaction
5. Being ethical
6. Environmentally safe and Sustainable

Question 9

Why set objectives?

Answer 9

Provide a point of focus
Help make decisions
Ensures that the business is on track to achieve