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Business Studies - Unit 1 > Topic 1: Creating a Business > Flashcards

Topic 1: Creating a Business Flashcards

- Entrepreneurs - Business Resources - Business Ownership - The Public Sector - Social Enterprises - Business Location - Business Aims and Objectives - Stakeholders

1
Q

Describe what it means to be enterprising.

A

To be enterprising means to have vision, energy, initiative and the ability to take risks to make and develop a successful business idea.

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2
Q

Characteristics of an Entrepreneur:
Innovation

A

Coming up with ideas and solutions to problems

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3
Q

Characteristics of an Entrepreneur:
Determination

A

Having the will power and commitment to succeed

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4
Q

Characteristics of an Entrepreneur:
Confident

A

Having the belief to succeed

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5
Q

Characteristics of an Entrepreneur:
Independance

A

Operating with freedom of control

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6
Q

Characteristics of an Entrepreneur:
Willing to make personal sacrifices

A

Giving up something in return for a better outcome

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7
Q

Characteristics of an Entrepreneur:
Being motivated and hardworking

A

Completing all tasks necessary

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8
Q

Characteristics of an Entrepreneur:
Risk Taking

A

Being prepared to risk losing time and money if the business is not sucessful

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9
Q

Characteristics of an Entrepreneur:
Leadership

A

Being able to inspire and motivate others

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10
Q

Characteristics of an Entrepreneur:
Good decision maker

A

Having the ability and confidence to make difficult decisions

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11
Q

Characteristics of an Entrepreneur:
Good planner

A

Planning for the long term

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12
Q

Characteristics of an Entrepreneur:
Persuasiveness

A

Inspiring and motivating all stakeholders to believe in their ideas

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13
Q

Why does the government encourage enterprise?

A
  1. It reduces unemployment and creates employment. This means less people on benefits
  2. New ideas may succeed and provide fresh opportunities
  3. People feel motivated and good
  4. Competition ensures a healthier business environment
  5. To rasie taxes, this means the economy can grow
  6. Helps the economy, it brings in taxes and creates jobs
  7. It reduces unemployment, which means less benefits the government has to pay
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14
Q

The Nature and Reward of Risk Taking:
Advantages:
Financial rewards

A

Potential to make large amounts of profit. This leads to increasing sales and further profit making opportunities.

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15
Q

The Nature and Reward of Risk Taking:
Advantages:
Potential for growth

A

The business can benefit from economies of scale

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16
Q

The Nature and Reward of Risk Taking:
Advantages:
To be ahead of competitors

A

To be ahead of competitors

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17
Q

The Nature and Reward of Risk Taking:
Advantages:
To have a competitive advantage

A

Such as a Unique Selling Point (USP) and become more well known

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18
Q

The Nature and Reward of Risk Taking:
Advantages:
Satisfaction

A

Success brings a sense of satisfaction

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19
Q

The Nature and Reward of Risk Taking:
Advantages:
To be able to avial of new opportunities

A

To be able to avail of new opportunities

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20
Q

The Nature and Reward of Risk Taking:
Advantages:
Taking a Risk

A

This helps to overcome the fear of failure

21
Q

The Nature and Reward of Risk Taking:
Advantages:
Independence

A

They get to make their own decisions

22
Q

The Nature and Reward of Risk Taking:
Disadvantages:
Losing money/profits

A

This could lead to business failure and personal failure. They have invested their own savings.

23
Q

The Nature and Reward of Risk Taking:
Disadvantages:
Owing money

A

The entrepreneur may have borrowed money from banks and will still have to pay this back if the business doesn’t succeed.

24
Q

The Nature and Reward of Risk Taking:
Disadvantages:
Time

A

Entrepreneurs have worked long hours which will have been wasted.

25
**The Nature and Reward of Risk Taking:** Disadvantages: Risk of losing time
Time wasted could have been spent on a new enterprise.
26
**The Nature and Reward of Risk Taking:** Disadvantages: Risk jobs
Potential loss of employement
27
**The Nature and Reward of Risk Taking:** Disadvantages: Risk losing the family home if unliimited liability
Risk losing the family home if unlimited liability
28
**The Nature and Reward of Risk Taking:** Disadvantages: Risk damaging an established brand / USP
Risk damaging an established brand / USP
29
**The Nature and Reward of Risk Taking:** Disadvantages: Personal stress
Risk of damaging health
30
What are the four business resources?
1. Land 2. Labour 3. Capital 4. Enterprise
31
Explain **land**
Land is a basic need for any business. The land is used *to place the business premises, houses, roads and farms*. **Land can also mean oceans and all natural resources and raw materials, which are contained either on, or above the earth. Car parking also needs land.**
32
Explain *labour**
Labour refers to **the human resource within a business**. The labour is the workers who are employed to manufacture the product or to provide a service for which the business has been set up. The labour used in a business can be *physical labour* - consturction workers, factory workers or it can be *mental labour** - artists, consultants
33
Explain **capital**
Capital is the resources or assets owned by the business. This can include the machinery and equipment required by businesses to produce the products or services. For example ovens to bake bread or vans for delivery services.
34
Explain **enterprise**
Enterprise is having the innovative ideas to spot business opportunities and the ability and determination and willingness to take risks to bring the business into the market. Enterprise is the role of making sure that land, labour and capital are in the correct proportions to run the business successfully.
35
Explain WHY a business starts
- Having a vision for a product or service they trruly believe can be successful and profitable in the market. This could have started as a hobby. - Having a way to earn money when you may have been left redundant. - Wanting to be independent in making their won decisions and being their own boss. - Knowing that all profits made within the business will belong to the business owner. - Wanting to provide a service or good that will help others.
36
Explain HOW a business starts
- Deside on a product an produce a model or prototype. - Deside where to source materials and supplies from. - Design a business plan. - Study the market and carry out research to show the type of people who would likely buy the product or service. - Work out how much it will cost to produce the product - Organise the necessary finance, this might be personal savings or going to the bank for a loan. - **Advertise the product and create a brand for the product to make it stand out from competition.**
37
A micro business has an employee count of...
1-9 employees
38
A micro business has an annual turnover of...
Less than £1.7 million
39
A small business has an emplyee count of...
10-49
40
A small business has an annual turnover of...
Less than £5.6 million
41
A medium sized business has an employee count of...
50-249
42
A medium sized business has an annual turnover of...
Less than £22.8 million
43
A large sized business has an employee count of...
250+
44
A large sized business has an annual turnover of...
More than £22.8 million
45
Describe a micro business
A business that operates on a very small scale. It has between 1-9 employees, with an annual turnover of less than £1.7 million.
46
Describe a small business
A business that is independently owned. It is limited in size and revenue depending on the industry. It has between 10-49 employees with an annual turnover of less than £5.6 million.
47
Describe a medium sized business
A business that is medium sized. It has between 50-249 employees with an annual turnover of less than £22.8 million.
48
Describe a large business
A business with more than 250 emplyees and an annual turnover of more than £22.8 million.
49

Business Studies - Unit 1 (3 decks)

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