1.5 Flashcards
(20 cards)
role of an entrepreneur
someone who has an idea and is willing to take a risk, passionate and driven
Creating and running a business.
benefits to setting up a business
1.be your own boss, personal satisfaction
2.choose when and where you work
what’s the difference between an entrepreneur and a leader
- Is focused on own goals
- Motivating and inspiring employees to work together
barriers to entrepreneurship
- Fear of failure
- Lack of finance
Financial motives and non financial
- profit maximisation
- ethical stance, independence
Advantages of limited liability and disadvantages
- only liable for what you invest not your own personal assets
- cost may have to pay more taxes and costs more to maintain
Private limited company
-Ltd
-limited liability
-Shareholders
Intrapeneurship
Activity within a business creating or discovering opportunities which lead to the creation of new parts of the business.
drawbacks of being an entrepreneur
Loneliness, financial pressure, strain on family + social life
SMART business objectives
S- specific objective so know exactly what to achieve
M- measurable, how far an objective has been achieved
A- achievable
R- relevant to the people responsible for achieving them
T-time bound , set with a time frame realistically
Corporate and functional objectives
C- what a business as a whole achieve. (Profit, growth)
F- set for individuals functions ( improve customer satisfaction, survival)
Unincorporated and incorporate businesses
Unincorporated = the owner is the business, unlimited liability (sole trader usually)
InCorperated = legal difference between business and owners, owner has limited liability (usually private limited companies)
Unlimited liability
Owner is personally responsible for debts and liabilities (car,house)
Sole trader and partnership +-
Sole trader (unincorporated) = owns a business on their own
+quick and easy to set up, keep all profit
- unimlited liability , pressure
Partnership (unincorporated) = 2-20 people
+ benefits from different expertise and skills
- unlimited liability , argue
Limited company +-
Company is owned by shareholder but run by directors , private limited company is most common , where shares of company are not public.
+ limited liability , easier to raise finance through shares
- big administration costs
Public limited company
Shares can be traded on public stock market
Franchises +-
A franchisor grants a license (framchise) to another business (franchisee) to allow it to trade using the brand.
+tested, developed brand, advice,support and training.
-expensive
Opportunity costs and example
What you give up when you choose one option over another.
Work Leisure- when you don’t work an extra 10hrs, more social leisure time but less money.
Trade off
Where more of one thing potentially results in having less of another.
E.g less market research (lower costs) = less successful new product.
Characteristic of entrepreneurs
Risk takers
Determination
Motivation
Time management
Resilience
