1.5 Entrepreneurs and Leaders

Question 1

What are the financial motives of setting up a business

Answer 1

Profit maximisation + profit satisfying

Question 2

what are non financial incentives of setting up a business

Answer 2

ethical stance, social enterprise, independence + home-working

Question 3

what is an intrapreneur

Answer 3

employees within a business, who have freedom to develop their ideas

Question 4

what are some characteristics of Entrepreneurs

Answer 4

Self-Confidence
Determination
Initiative
Commitment

Question 5

what are some skills of entrepreneurs

Answer 5

Organisation
Financial Management
Communication
Negotiating

Question 6

Pro and Con of Sole traders

Answer 6

Pro
Full control + keep all Profits
Con
Unlimited liability
Limited growth potential

Question 7

Pro and Con for Partnership

Answer 7

Pro
Shared responsibility
easier access to capital
Con
Unlimited liability
potential disagreements

Question 8

Pro and Con for Private Limited company (Ltd)

Answer 8

Pro
Limited liability
Can see shares privately
Con
More legal requirements
restricted share sales

Question 9

Pro and Con for Public Limited company (PLC)

Answer 9

Pro
access to large capital
Greater business credibility
Con
Loss of control
Complex structure

Question 10

Pro and con of Franchising to Franchisor

Answer 10

Pro
- Effective way to grow business
- franchisor gets setup fee and royalty payments
Con
Risk of franchise damaging brand

Question 11

Pro and Con of franchising for a Franchisee

Answer 11

Pro
Franchisee receive ‘Business in a box”
plans, product, marketing
Provided with training + support
Con
Expensive set up fees + little freedom to change business format
Royalty payments

Question 12

what are the difficulties of becoming a leader

Answer 12

• needs strong qualities eg confidence
• stress
• sharing ownership of their business