unit 2

Question 1

thirteen characteristics of entrepreneurship

Answer 1

f. r.o.g. s.h.a.c. i.v. m.p.
- self-confident
- perceptive
- hardworking
- motivated
- resourceful
- able to manage risk
- creative
- goal-oriented
- optimistic
- flexible
- independent
- visionary
- able to get along with others

Question 2

What is the difference between entrepreneurial characteristics and entrepreneurial skills?

Answer 2

entrepreneurial characteristics is something you develop entrepreneurial skills is having the ability do something specific (chef - cooking skills)

Question 3

difference between an invention and innovation

Answer 3

invention - A product or process that does something that has never been done before. When the invented product or service fills a need, it can potentially be sold to consumers.
Innovation - An innovation requires using new technology, materials or processes to improve existing products or services or to create new production and distribution processes.

Question 4

what is marketing

Answer 4

The action or business of promoting and selling products or services, including market research and advertising.

Question 5

do a balance sheet

Answer 5

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Question 6

do an income statement

Answer 6

….

Question 7

4 P’s of marketing

Answer 7

product, price, place, promotion

Question 8

product

Answer 8

service done for customers

• Quality
• Design
• Features
• Benefits
• Service & Support

Question 9

price

Answer 9

the cost of an item

• Perception of the product’s value in relation to price
• Cover costs and make a profit

Question 10

place

Answer 10

Where the product will be sold

- How the product / service will get to the consumer

Question 11

promotion

Answer 11

How will customers be made aware of the product or service

advertising, personal selling, sales promotion (coupons, contests, premiums, samples, and special events), sponsorship

Question 12

2 c’s of marketing

Answer 12

competitive market

consumer market

Question 13

competitive market

Answer 13

other businesses that have similar products and compete with us for consumer dollars

Direct Competition
- other sellers of products similar to ours

Indirect Competition
- other spending needs that may draw customer dollars away from our products

Question 14

consumer market

Answer 14

The type of consumers who buy their products.

• Demographics
  age, gender, family, life cycle, income, ethnicity and culture
• Lifestyle
  values, beliefs and motivations

Question 15

channels of distribution

Answer 15

direct
indirect
specialty

Question 16

direct distribution

Answer 16

the business that makes the product sells it directly to the consumer (e.g. at a farmer’s market, bakery, factory outlet store)

• allows for direct communication between producers and consumers (famers market)

Question 17

indirect distribution

Answer 17

• the business sells to an intermediary who then sells the product to the consumer
• the intermediary could be a retailer, or it could be an importer or wholesaler who will then sell to a retailer
• intermediaries add to the cost of a product (winners, the bay)

Question 18

specialty distribution

Answer 18

the consumer buys from a place other than a retail store (e.g. vending machine, catalogue)

Question 19

what are the three types of logos

Answer 19

1) monogram
2) visual symbols
3) abstract symbols

Question 20

what is a slogan

Answer 20

A short catchy phrase that is usually attached to the company’s name and logo.

Question 21

What are the four main functions of management?

Answer 21

1) planning
2) controlling
3) leading
4) organizing

Question 22

what are the three main leadership styles?

Answer 22

autocratic
democratic
laissez-faire

Question 23

pros and cons of autocratic

Answer 23

pros:
- May be valuable in some types of business where decisions need to be made quickly and decisively
- keeps everyone on track

cons:
- Can create de-motivation and alienation of staff
- doesn’t involve other people’s decisions

Question 24

pros and cons of democratic

Answer 24

pros:
- Encourages decision making from different perspectives
- Improves the sharing of ideas and experiences within the business

cons:
- Can delay decision making
- accountability

Question 25

pros and cons of laissez-faire

Answer 25

pros:
- Can be very useful in businesses where creative ideas are important
- Can be highly motivational, as people have control over their working life

cons:
- Can make decision making time-consuming
- no one gets anything done

Question 26

What are the benefits of assembly lines?

Answer 26

• get the job done quickly

- allow workers to specialize in certain fields which increases productivity

Question 27

What is intellectual property?

Answer 27

a work or invention that is the result of creativity (a manuscript or a design) to which one has rights and for which one may apply for a patent, copyright, trademark

Question 28

what are the 6 factors of production?

Answer 28

n.i.m.c.l.r.
natural resources
raw material
labour
capital
information
management

Question 29

what are natural resources?

Answer 29

take materials out of the earth or sea, referred to as extractive industries

• water

Question 30

what are raw materials?

Answer 30

only good used in the manufacturing of other goods (ingredients, supplies)

• chemicals, plastic

Question 31

what is labour?

Answer 31

all physical and mental work need to make a good or service

• factory wokers

Question 32

what is capital?

Answer 32

money invested in business (cash/equipment)

• machines

Question 33

what is information?

Answer 33

info about customers, competition, political conditions

• donald trump – has his own company

Question 34

what is management?

Answer 34

people who run the business and control or direct the factors of production

• bosses, managers

Question 35

draw a traditional product life cycle

Answer 35

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Question 36

draw three traditional product life cycles

Answer 36

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