1.5 - Entrepreneurs & Leaders

Question 1

What is an entrepreneur

Answer 1

A person who organises, operates, and assumes the risk for a business venture ( takes risks in starting a new business )

Question 2

What is the role of an entrepreneur ? (3)

Answer 2

Spots business opportunities
Takes calculated risks in order to gain future returns
Acts as a catalyst for the creation and growth of new business enterprises

Question 3

What is intrapreneurship ?

Answer 3

When people within a business create or discover new business opportunities, which leads to the creation of new party’s of the business or even new businesses

Question 4

Barriers to entrepreneurship

Answer 4

Support and finance

Lack of viable business idea

Question 5

Define risk

Answer 5

The probability that things will not go as well as planned, the chance that money invested in the business will be lost.

Question 6

What are some rewards for enterprise ?

Answer 6

Profits , capital gains , self esteem , personal development , sense of control

Question 7

Financial motives for starting a business (2)

Answer 7

• Profit maximisation - the desire to earn substantial rewards by building a valuable business
• Profit satisfying - a sufficient profit to enable a satisfactory standard of living

Question 8

Non financial motives for starting a business (5)

Answer 8

• more control over working life
• need for flexible working
• want to be your own boss
• want reward from effort
• persue an interest or hobby

Question 9

What is Social Enterprise

Answer 9

Not for profit organisations are businesses that trade in order to benefit the community. E.g. Trusts, cooperatives

Question 10

Barriers of BEING an entrepreneur (5)

Answer 10

Isolation/loneliness 
Financial pressure
Hard work 
High stress levels
Need to multitask

Question 11

What are opportunity costs

Answer 11

Measures the cost of a choice made in terms of the next best alternative sacrificed

Question 12

What is a trade off

Answer 12

Having more of one thing potentially results in having less of another

Question 13

Overtrading -

Answer 13

The situation where a business expands at a rate that cannot be sustained by its capital base

Question 14

Delegation

Answer 14

Passing authority down the hierarchy to allow more junior employees have some decision making power.

Question 15

Mission

Answer 15

A qualitative statement of the business’s aims

Question 16

Aim

Answer 16

A long term plan from which business objectives are derived

Question 17

Objective

Answer 17

A target which must be achieved in order to realise the stated aim

Question 18

To help management set effective objectives, they use :

Answer 18

SMART

Question 19

What is smart

Answer 19

Specific 
Measurable 
Achievable 
Relevant 
Time bound

Question 20

Strategic objectives

Answer 20

Long term based, higher risk and uncertainty

Question 21

Tactical objectives

Answer 21

Short term based, low risk and easy to change at minor financial costs

Question 22

What are the 7 main business objectives

Answer 22

Survival 
Profit maximisation 
Sales maximisation 
Market share
Cost efficiency 
Employee welfare
Customer satisfaction