Topic 1-Entrepreneurship

Question 1

Define Enterprise/Entrepreneur

Answer 1

Someone who has the ability to spot an opportunity for a new business,has ideas,combines the other factors of production and is prepared to take risks to make the business work

Question 2

Define Business

Answer 2

An organisation which takes the factors of production and combines them.They add value and sell a good or service with the aim of satisfying customers and making a profit

Question 3

Examples of entrepreneurs

Answer 3

Elon musk-Tesla
Richard Branson-virgin
Microsoft-Bill Gates
Apple-Steve Jobs

Question 4

What does it mean to be entreprising

Answer 4

To be enterprising means to be able to spot a good business opportunity and to have the vision and drive to make that business succeed.The entrepreneur has to be prepared to take calculated risks to make the business work

Question 5

Characteristics of an Entrepreneur

Answer 5

• Original ideas therefore they are self confident and have passion about the idea
• Determined and not discouraged by failures or setbacks therefore they are a good motivator
• Vision therefore creative thinker and shows initiative

Question 6

Why does the government encourage enterprise

Answer 6

• New jobs means the Government has to pay out less on benefits therefore they have more money to put towards things like education and health services
• Reduces unemployment by providing jobs which will therefore have a positive multiplier effect
• New ideas may make the country more competitive and create jobs which therefore might encourage investment from abroad

Question 7

Reasons for setting up a business

Answer 7

• To make a profit by turning a hobby into a career

- They have spotted a gap in the market and they want to work for themselves and make their own decisions

Question 8

The nature of risk taking

Answer 8

• Losing money
• Losing time
• Personal stress

Question 9

The rewards of risk taking

Answer 9

• Making profits
• Becoming famous
• Satisfaction
• Independence