1.5 Entrepreneurs and leaders

Question 1

5 roles of an entrepreneur

Answer 1

a) creating and setting up a business
b) running and expanding/ developing a business
c) innovation within a business (intrapreneurship)
d) barriers to entrepreneurship
d) anticipating risk and uncertainty in the business environment

Question 2

what are motives

Answer 2

personal objectives and goals

Question 3

financial motives (2)

Answer 3

profit maximisation
profit satisficing

Question 4

non-financial motives (3)

Answer 4

ethical stance
social entrepreneurship
independence and home working

Question 5

business objectives (3)

Answer 5

• survival
• profit maximisation
• other objectives:
  sales maximisation
  market share
  cost efficiency
  employee welfare
  customer satisfaction
  social objectives

Question 6

2 forms of business with unlimited liability

Answer 6

• sole trader
• partnership (2-21)

Question 7

2 forms of business with limited liability

Answer 7

• private limited company (Ltd.)
• public limited company (PLC.)

Question 8

4 other types of business

Answer 8

• franchises
• social enterprise
• lifestyle businesses
• online businesses

Question 9

2 business choices

Answer 9

• opportunity cost
• trade-offs

Question 10

3 difficulties in developing from an entrepreneur to a leader

Answer 10

• trust
• sharing ownership + control
• delegation