Untitled Deck Flashcards
What is an entrepreneur?
An individual who takes risks to start and manage a business.
What are key characteristics of an entrepreneur?
Risk-taking, creativity, resilience, problem-solving, decision-making.
What is enterprise?
The process of identifying a business opportunity and taking risks to set up a business.
What are the rewards and risks of entrepreneurship?
Rewards: Profit, independence, personal satisfaction. Risks: Financial loss, uncertainty, stress.
What is intrapreneurship?
Employees acting like entrepreneurs within a business to innovate and improve operations.
What are the advantages and disadvantages of entrepreneurship?
Advantages: Financial independence, creative freedom, profit potential. Disadvantages: High risk, financial instability, long working hours.
What is the main purpose of business activity?
To produce goods and services to satisfy customer needs and wants.
What is the difference between needs and wants?
Needs are essential (e.g., food, shelter), while wants are non-essential (e.g., luxury items).
What is value addition?
Enhancing a product’s worth by improving quality, branding, or convenience.
How does a business add value?
Branding, product differentiation, customer service, efficiency.
What are the main types of business ownership?
Sole trader, partnership, private limited company (Ltd), public limited company (Plc), franchise, cooperative.
What is a sole trader?
A business owned and run by one person with unlimited liability.
What are the advantages and disadvantages of a sole trader?
Advantages: Full control, keeps all profits, simple setup. Disadvantages: Unlimited liability, limited capital, heavy workload.
What is a private limited company (Ltd)?
A business owned by shareholders with limited liability. Shares are not publicly traded.
What are the advantages and disadvantages of a private limited company?
Advantages: Limited liability, easier to raise capital, separate legal entity. Disadvantages: Complex setup, financial disclosure, profit sharing.
What is a public limited company (Plc)?
A company with shares traded on the stock exchange and limited liability.
What are the advantages and disadvantages of a public limited company?
Advantages: Large capital potential, limited liability, high status. Disadvantages: Risk of takeover, strict regulations, loss of control.
What is a franchise?
A business model where a franchisor licenses its brand and operations to a franchisee.
What are the advantages and disadvantages of a franchise?
Advantages: Established brand, lower risk, training provided. Disadvantages: High startup costs, less control, ongoing fees.
What is a stakeholder?
An individual or group affected by business decisions (e.g., employees, customers, suppliers).
What are internal stakeholders?
People within the business (e.g., owners, employees, managers).
What are external stakeholders?
People outside the business (e.g., customers, suppliers, government, local community).
What are the advantages and disadvantages of stakeholder engagement?
Advantages: Improved relationships, better decision-making, enhanced reputation. Disadvantages: Time-consuming, potential conflicts, increased costs.
What is a market?
A place where buyers and sellers interact to exchange goods and services.
What are the main market forces?
Supply, demand, competition, customer trends.
How does demand affect pricing?
Higher demand usually increases prices; lower demand decreases prices.
How does supply affect pricing?
High supply lowers prices; low supply increases prices.
What is quality management?
Ensuring products and services meet customer expectations.
What are the benefits of good quality management?
Customer satisfaction, reduced costs, improved reputation.
What are the advantages and disadvantages of high-quality standards?
Advantages: Customer loyalty, competitive advantage, fewer defects. Disadvantages: High costs, training needs, time-consuming.
What is quality control?
Checking products at the end of production to ensure quality standards.
What is quality assurance?
Quality checks at every stage of production to prevent defects.
What is Total Quality Management (TQM)?
A continuous improvement approach where all employees focus on quality.
How is quality measured?
Customer feedback, defect rates, repeat purchases, certifications.
What is motivation in business?
The factors that influence employees to work effectively.
What is Maslow’s hierarchy of needs?
A motivation theory outlining five levels: physiological, safety, social, esteem, self-actualization.
What are Herzberg’s motivators and hygiene factors?
Motivators (e.g., achievement) improve satisfaction; hygiene factors (e.g., salary) prevent dissatisfaction.
What are the advantages and disadvantages of employee motivation?
Advantages: Increased productivity, lower absenteeism, higher job satisfaction. Disadvantages: Costly incentives, potential inequality, time-consuming.
What are the main leadership styles?
Autocratic, democratic, laissez-faire.
What is an autocratic leader?
A leader who makes decisions alone without consulting employees.
What is a democratic leader?
A leader who involves employees in decision-making.
What is a laissez-faire leader?
A leader who provides minimal guidance and allows employees to make decisions.
What are the advantages and disadvantages of different leadership styles?
Autocratic: Quick decisions but low morale. Democratic: High engagement but slower decisions. Laissez-faire: Encourages innovation but can lead to disorganization.
