Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Theme 1 > 1.5 Entrepreneurs and Leaders > Flashcards

1.5 Entrepreneurs and Leaders Flashcards

1
Q

What does entrepreneurship involve?

A

Creating and setting up a business
Running and setting up a business
Innovation within a business (intrapreneurship)
Anticipating risk and uncertainty in business environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Issues for setting up a business

A

Having the initiative to exploit a business opportunity
Calculate risks involved in the business
Raising the finance to investment in the set up the business
Raising the finance to investment in the set up the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Issues when expanding the business

A

Carry out marketing research to see if there is demand to justify expansion
Raise necessary finance
Introduce new products and services
Invest in new technology, better equipment to improve service
Take on more skilled staff
Changing the organisation of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why would businesses encourage intrapreneurship?

A

Helps the business grow and develop, important in more dynamic markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Uncertainty

A

Situation in which there is a degree of risk and the consequences are not known

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 reasons why businesses face uncertainty

A

Economic reasons
Competitor actions
Changes in society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Motives for starting a business

A

Be their own boss
Earn their own money
More flexibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Ethical reasons for starting a business

A

Make a difference, eco-friendly
Give back to society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Personal barriers to entrepreneurship

A

Lack of self esteem
Risk averse
Fear of failure
Lack of tech skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Economic barriers to entrepreneurship

A

Taxation
Recession
Unemployment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Financial barriers to entrepreneurship

A

Lack of start up capital
Lack of cheap labour
Lack of investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Political barriers to entrepreneurship

A

Regulations
Unstable political landscape
Lack of govt support

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Business objectives

A

Set for a business in the short or medium term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Survival as an objective

A

Initial objective may be to survive
The objective is to reach the BE point
A recession may mean that businesses shift focus to survive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Profit maximisation as an objective

A

Key focus as they’re needed to reinvest into the business to allow it to grow
To do this, owner must manage costs and boost productivity. Also ensure sales and profit margins are high.
Businesses will compare profits to previous years and competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Sales maximisation as an objective

A

Sales figures can be examined on a daily, weekly or monthly basis.
Managers set targets for sales figures and offer bonuses to staff for achieving.
Often found in environments like: estate agents or car dealerships.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Market share as an objective

A

May be done in a very competitive market
To gain, firms will try to provide better value or higher quality than competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Cost efficiency

A

Achieved by:
Paying minimum wage to unskilled workers
Subcontracting where economically viable
Lean production or construction where material, time and process waste is eliminated to save costs
Lowering the average costs through economies of scale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Employee welfare

A

Harmonious relations as an objective, aim to achieve this through employee welfare.
Benefits include: medical insurance, discounts, profit sharing, canteens and gyms
Employees that are satisfied are loyal and hard working, increased morale, motivation and productivity.
Business also gets a stronger public image.

20
Q

Customer satisfaction

A

Seek to monitor customer service levels through surveys and focus on quality
Understand what the customer wants and provide it
Also aim to reduce the no. complaints

21
Q

Social objectives

A

Also known as corporate social responsibility objectives
Involves: Reducing impact on the environment
Fair wages in developing countries
Helping society
Compliance with laws to minimise externalities.
Can become the USP of the business

22
Q

Sole traders

A

Business owned by one owner
Small business
Unlimited liability

23
Q

Advantages of sole trader

A

Easy to set up
Decisions made quickly
Less Capital needed
All profits kept
Own boss

24
Q

Disadvantages of sole trader

A

Unlimited liability
Difficult to raise money
No Econ of Scale
Poor holidays and ill days

25
Q

Partnership

A

2-20
Joint owners of the business
Unlimited liability
Profits shared

26
Q

Advantages of Partnership

A

Easy to set up
Small capital needed
Profits go to partners
Good working relationships
No need to make public information
Share problems and decisions

27
Q

Disadvantages of Partnership

A

Unlimited liability
Partners have disagreements
If partner dies or becomes bankrupt- partnership is dissolved

28
Q

Private ltd company LTD

A

Owners buy and sell shares in the business
Separate legal identity
Limited liability
Shares cannot be bought publicly
Min 2 people
Expand by selling shares
Normally medium sized business

29
Q

Advantages of an LTD

A

Limited liability
Can raise capital through shares
Can employ managers to run business
Separate legal status

30
Q

Disadvantages of LTD

A

Accounts of company cannot be kept private- public can see
More difficult and expensive to set up- administration
Cannot sell shares on stock exchange

31
Q

Public Limited Company PLC

A

Normally start as LTD then become a PLC
Shares are made available on stock exchange
Most shares owned by organisations
Separate legal status

32
Q

Advantages of a PLC

A

Limited liability
Easy to raise capital
Banks more willing to lend
Easier to grow and expand

33
Q

Disadvantages of PLC

A

Expensive- Administrative work
Issue info about self- expensive
Has to prepare annual accounts
Also make them available to competitors to see.

34
Q

Floating on the Stock Market

A

Costly way of raising new capital by selling a percentage of a company on a stock market for the first time.

35
Q

Franchise

A

Where a small business owner buys the right to sell the goods are services of a large, well- established company.

36
Q

Franchisee

A

Small business owner who is buying the rights

37
Q

Franchisor

A

Large business who are selling the rights

38
Q

Franchise Advantages

A

The franchisor chooses the franchisees carefully
The franchisor decides how much money the franchisee must invest in the business
The franchisor provides support management advice and training- help solve problems

39
Q

Franchise Disadvantages

A

Franchisee’s dont have the freedom of running their own business
Franchisee cannot sell the business without franchisors permission
Franchisee pays percentage of the profits in royalties
Franchisee will never own the business outright

40
Q

Social enterprise

A

Business that trades for a social or environmental purpose
Their mission is social and they aim to achieve it by selling products and services
NOT a charity- no grants or donations

41
Q

Lifestyle business

A

Aim is to provide great quality of life for the owner
Owners start a business hoping to sustain a certain level of income
They may start a business doing something they really enjoy
It allows an entrepreneur to live how they want and still run a business

42
Q

Online business

A

A business that operates on the internet via a website or app
Online businesses have disrupted a no. industries

43
Q

Advantages of Online Businesses

A

Cheaper to set up
Wider range of customers
Collect more data about customers
Stock a wider range of items

44
Q

Disadvantages of online businesses

A

Greater competition
Depends on distribution system
Less impulse purchases
Less trust than a physical store

45
Q

Trade off

A

Arises where having more of one thing potentially results in having less of another

46
Q

Opportunity cost

A

Cost of missing out on the next best alternative.

Business Theme 1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions