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Define the term entrepreneur.
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Define the term entrepreneur.
An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success.
True or False?
Entrepreneurs take risks.
True.
Entrepreneurs take risks - financial, personal, or professional.
What is the definition of intrapreneurship?
Intrapreneurship is the practice of promoting entrepreneurial thinking and behaviour among employees.
True or False?
An entrepreneur may invest their life savings into a new venture or quit a secure job to start their own business.
True.
An entrepreneur may invest their life savings into a new venture or quit a secure job to start their own business.
State two barriers to entrepreneurship.
Barriers to entrepreneurship include:
Lack of entrepreneurial capacity
Fear of failure
Lack of confidence
Lack of training or know-how
Limited access to finance
True or False?
Intrapreneurship allows businesses to tap into the creative potential of their employees.
True.
Intrapreneurship allows businesses to tap into the creative potential of their employees to generate new products or processes that can drive growth.
What is the difference between risk and uncertainty?
Risk is something an entrepreneur can plan for. Uncertainty is caused by unexpected factors outside of the entrepreneur's control.
True or False?
Successful entrepreneurs cannot manage risk and respond to uncertainty.
False.
Successful entrepreneurs can manage risk and quickly respond to uncertainty in the business environment.
What is meant by the term entrepreneurial capacity?
Entrepreneurial capacity refers to an individual's ability to think creatively, take risks, identify and seize business opportunities.
True or False?
A change in the political party governing the country is an example of a risk.
False.
A change in the political party governing the country is an example of an uncertainty.
Give two examples of desirable entrepreneurial skills.
Desirable entrepreneurial skills include:
Communication
Team working
Problem solving
Organisation
Numeracy
Adept at using information technology
True or False?
Non-financial reasons for setting up a business include ethical beliefs and social entrepreneurship.
True.
Non-financial reasons for setting up a business include the owner's ethical beliefs and social entrepreneurship.
Define the term profit maximisation.
Profit maximisation is a relentless focus on making as much profit as possible by reducing costs and increasing sales revenue.
What does the term initiative mean in relation to entrepreneurial characteristics?
Initiative is the ability of an entrepreneur to use their judgement to make decisions and do things without needing to be told what to do.
What is the meaning of the term satisficing?
Satisficing occurs when entrepreneurs do not relentlessly seek to maximise profits but rather focus on achieving an acceptable level of profit that meets their needs.
True or False?
An ethical entrepreneur may adopt a positive stance towards environmental responsibility or social justice.
True.
An ethical entrepreneur may adopt a positive stance towards environmental responsibility or social justice.
What is a social enterprise?
A social enterprise is a business that addresses a social or environmental problem while also generating an income for its owner.
True or False?
The desire for independence is a reason for an entrepreneur to start up their own business.
True.
Independence is often a key reason for setting up a business. Many people want to be their own boss and have control over their work.
What is meant by the term resilience?
Resilience is the ability to withstand or recover quickly from difficulties.
True or False?
Home working has been facilitated by advances in technology.
True.
Advances in technology have meant starting and running businesses from home is easier, allowing flexibility and a better work-life balance.
True or False?
The aim of most start-up businesses is to maximize profits.
False.
The aim of most start-up businesses is to survive the initial entry into the market and to generate enough cash flow to remain in business.
Define the term sales maximisation.
Sales maximisation is a focus on generating the maximum revenue possible through the sale of products.
What is meant by the term market share?
Market share is the proportion of the total market sales a business or brand controls.
True or False?
Customer satisfaction can be achieved by delivering high-quality products.
True.
Customer satisfaction can be achieved by delivering high-quality products.
What is the definition of profit maximisation?
Profit maximisation is the relentless focus on making as much profit as possible by reducing costs and increasing sales revenue.
What is meant by the term cost efficiency?
Cost efficiency refers to a company's ability to produce and deliver its products at the lowest possible cost.
What is meant by the term employee welfare?
Employee welfare refers to how well a company takes care of its employees needs, including providing a safe working environment and prioritising their mental, emotional and physical health.
True or False?
Meeting social objectives can help a business improve its reputation.
True.
Meeting social objectives can help a business improve its reputation.
How can revenue maximisation be achieved when products have price-elastic demand?
Prices should be lowered to achieve revenue maximisation when demand for products is price elastic.
Define the term dividend.
A dividend is a sum of money paid each year by a company to its shareholders from its profits.
Define the term sole trader.
A sole trader is a business with a single owner, and it has unlimited liability.
True or False?
Sole traders have unlimited liability.
True.
Sole traders have unlimited liability, meaning the owner is personally responsible for debts the business incurs.
What is the definition of a partnership?
A partnership is a form of unlimited liability ownership where two or more people join together to form a business.
What is the definition of a private limited company?
A private limited company is a limited liability business owned by shareholders, who can offer shares for sale privately, usually to friends and family or to venture capitalists.
True or False?
A private limited company is known as a PLC.
False.
A public limited company is known as a PLC.
Define the term franchise.
A franchise is where an individual (franchisee) buys the rights to operate a business model from a larger company (franchisor). The franchisee receives the branding and business systems in exchange for an initial lump sum of money plus ongoing fees.
True or False?
In a franchise, profits are usually reinvested back into the business or used to create positive social change or address an environmental issue.
False.
In a social enterprise, profits are usually reinvested back into the business or used to create positive social change or address an environmental issue.
What is a lifestyle business?
Lifestyle businesses are typically small, owner-operated businesses that prioritise a specific lifestyle or personal interest of the owner over profits.
True or False?
Online businesses usually have high overhead costs and operate from a fixed location.
False.
Online businesses often have low overhead costs and can operate from anywhere with an internet connection.
What is an initial public offering (IPO)?
An initial public offering (IPO) is the process of a company transitioning from a private limited company (Ltd) to a public limited company (Plc) by offering its shares to the public for the first time.
Define the term opportunity cost.
Opportunity cost is the loss of the next best alternative when making a decision.
True or False?
Choices have to be made due to scarcity.
True.
Choices have to be made due to scarcity.
True or False?
Forgoing market research may help a business get its product to market quicker.
True.
Forgoing market research may help a business get its product to market quicker, though it may not fully meet customers' needs.
What is a trade-off?
A trade-off occurs when two things cannot both be fully achieved; having more of one thing may mean having less of another.
True or False?
When a local council decides to provide free bus services to all pensioners in the area, it may be unable to fund libraries, some of which may have to close. In this instance, free bus travel is an example of the opportunity cost.
False.
The opportunity cost is the library funding as it represents the loss of the next best alternative.
What is a CEO?
A CEO is the chief executive officer, the highest-ranking person in a company, who is ultimately responsible for the business success.
True or False?
Moving from an entrepreneur to a leader can be a challenging transition.
True.
Moving from an entrepreneur to a leader can be a challenging transition. The skills and mindset required to successfully launch and grow a business are often different from those required to lead and manage a team.
What is meant by the term delegation?
Delegation is where a manager gives authority to another person to carry out specific activities.
What is meant by the term emotional intelligence?
Emotional intelligence is the capacity to be aware of, control, and express one's emotions and to handle interpersonal relationships effectively.
True or False?
Entrepreneurs are often driven by their ideas and visions.
True.
Entrepreneurs are often driven by their ideas and visions.
What is meant by the term figurehead?
A figurehead is an individual that represents the organisation and motivates the team to achieve goals.
True or False?
Many entrepreneurs are driven more by emotional intelligence than passion and enthusiasm.
False.
Many entrepreneurs are driven more by passion and enthusiasm than emotional intelligence.
What is the difference between a strategist and a tactician?
A strategist is focused on setting goals and planning actions, while a tactician devises and implements short-term tactics to achieve goals.