Theme 1.5 Flashcards
What are three barriers to entrepreneurship?
- Funding
- Gender Bias
- Lack of support sector public
What are three characteristics of an entrepreneur?
- Risk taking
- Focused
- Passionate and visionary
What are two financial motives for starting a business?
- Profit maximisation
- Profit satisficing
What is profit satisficing?
A sufficient profit to enable a satisfactory standard of living
What are three non-financial motives for starting a business?
- More control over working life
- Frustration with unfulfilled potential
- Satisfaction from building something
What are three downsides of being an entrepreneur?
- Financial pressure
- Strain on family and social life
- Higher stress levels
What is a business objective?
A target which must be achieved in order to realise the stated aim
What is a business aim?
A long-term plan from which business objectives are derived
What is a business mission?
A qualitive statement of the businesses aims
What acronym is there for how a business objective should be laid out?
SMART
Specific
Measurable
Achievable
Relevant
Time Bound
What are three evaluation points of being a sole trader?+–
+Quick and easy to set up - business can always be transferred to a limited company once launched
-Harder to raise finance - limited funds
-Full personal liability
What is an unincorporated company?
1.The owner is the business
2.Owner has unlimited liability for business actions
3.Most operate as sole traders
What is an incorporated company?
1.Owners have limited liability
2.Operate as private limited companies
What are three evaluation points of a partnership?
+Business benefits from the expertise and efforts of more than one ownership
+greater potential to raise finance
-One poor decision of one partner damages the interests of the other partners
What are three evaluation points of operating as a limited company?
+Protects the shareholders
+Easier to raise finance - through sales of shares
-Public disclosure of company information
