All definitions

Question 1

Enterprise

Answer 1

Another word for an organisation or business managed by one or more individuals who are able to take the initiative to make decisions and take calculated risks. It also refers to the characteristics/qualities that make people want to set up and run a business, such as the ability to be innovative, take initiative, make decisions and bear the risk of setting up and running a business.

Question 2

Business enterprise

Answer 2

An enterprise whose main aim is to make a profit.

Question 3

Social enterprise

Answer 3

An enterprise that may generate profits, but that is not its main aim, and profits are just seen as a way to sustain itself. Any profits made are reinvested into things that benefit the community.

Question 4

Enterprise capability

Answer 4

The key attributes that comprise enterprise capability are risk-taking, decision-making, innovation, and a positive attitude.

Question 5

Stakeholder

Answer 5

An individual, group, or organisation with an interest in the activities of a business.

Question 6

Sole Trader

Answer 6

A business that is owned and run by just one person

Question 7

Partnership

Answer 7

A business that is owned by two or more people

Question 8

Limited Company

Answer 8

An incorporated business that is a separate legal entity from its owners

Question 9

Enterprise process

Answer 9

The process which involves identifying the problem/need/want, exploring creative solutions, action planning, implementing the plan, monitoring progress, and evaluating successes and failures in an enterprise activity.

Question 10

Limited company

Answer 10

A company that is owned by its shareholders who own a share of the company.

Question 11

Co-operative

Answer 11

A business owned and managed by people who use its services and/or work there.

Question 12

Franchise

Answer 12

A form of business where a company (franchisee) buys the right to use an existing company’s (franchisor) brand name and products/services.

Question 13

Social enterprise

Answer 13

A business with social objectives and ethical values aimed at benefiting the community.

Question 14

Not-for-profit enterprises

Answer 14

Businesses involved in producing goods or providing services in a socially responsible way that reinvest profits into the business for the benefit of the community, generate their own income, and do not rely on donations to survive.

Question 15

Charities

Answer 15

Businesses that raise money by doing fundraising activities and collecting donations.

Question 16

Skills audit

Answer 16

A way to identify which skills you do or do not have by rating yourself honestly on all skills you might need and asking others to rate you.

Question 17

Creativity

Answer 17

A person uses their imagination to improve on an already established idea or design.

Question 18

Perseverance

Answer 18

A person continues to do something despite difficulty and setbacks.

Question 19

Taking Opportunities

Answer 19

A person seizes opportunities to act and take charge.

Question 20

Risk

Answer 20

The chance of gaining or losing something as a result of an action taken.

Question 21

Risk assessment

Answer 21

Part of the planning process to identify and assess possible risks involved in a project or activity.

Question 22

PEST analysis

Answer 22

This involves identifying important external factors (Political, Economic, Social, Technological) that could have an impact on an enterprise.

Question 23

SWOT analysis

Answer 23

A SWOT analysis identifies current internal strengths and weaknesses and potential external opportunities and threats for an individual idea or project.

Question 24

Ethics

Answer 24

Moral values and principles that govern a person’s behaviour or the conducting of an activity.

Question 25

Market research

Answer 25

Provides information needed to help make informed decisions.

Question 26

Quantitative Data

Answer 26

Numerical information usually obtained from sales figures, surveys, and questionnaires.

Question 27

Qualitative Data

Answer 27

Information based on opinions and reasons obtained from visits, interviews, and focus groups.

Question 28

Primary research

Answer 28

Involves collecting original information.

Question 29

Secondary research

Answer 29

Involves using existing sources of information.

Question 30

Action plan

Answer 30

Provides a step-by-step framework of individual activities needed to complete a project.

Question 31

Trade credit

Answer 31

An agreement that means that an enterprise can buy the items that it needs and then have an agreed number of days in which to pay the supplier.

Question 32

Trade payables

Answer 32

Money owed by the enterprise to its suppliers for items bought on credit.

Question 33

Trade receivables

Answer 33

The amount of money owed by customers is shown in the accounts as trade receivables.

Question 34

Cash flow forecast

Answer 34

Uses information about all the cash that comes into an enterprise (cash inflow) and all the cash that goes out of an enterprise (cash outflow) to predict what might happen in its short-term financial future.

Question 35

Break-even point

Answer 35

The number of units an enterprise would need to sell to be sure there is enough money coming in to equal all the costs of the enterprise.

Question 36

Revenue

Answer 36

All the money that comes into the enterprise from selling goods or services.

Question 37

Fixed Costs

Answer 37

Costs that stay the same no matter the activity of the enterprise.

Question 38

Variable Costs

Answer 38

Costs that increase and decrease with the activity of the enterprise.

Question 39

Total Costs

Answer 39

All the costs of an enterprise when producing its goods or services. Fixed costs + variable costs = total costs

Question 40

Contribution per unit

Answer 40

Sale price per unit - Variable costs per unit.

Question 41

Cost

Answer 41

Cash that an enterprise spends to produce its goods or services.

Question 42

Income statement

Answer 42

A record of the finances of an enterprise over a specific period of time.

Question 43

Gross Profit

Answer 43

Revenue - Cost of sales

Question 44

Net Profit

Answer 44

Gross profit - All other expenditure (overheads)

Question 45

Customer retention

Answer 45

Keeping as many existing customers as possible.

Question 46

Negotiation

Answer 46

The process of discussion in order to reach agreement on some terms of the transaction.

Question 47

Communication

Answer 47

The process through which the sender passes their message to a receiver so that it is accurately understood and can be acted upon.

Question 48

Meeting

Answer 48

When people come together for a particular purpose.

Question 49

Minutes

Answer 49

A document recording what happened in the meeting

Question 50

Presentation

Answer 50

A speech or talk that introduces a new idea or piece of work to an audience that makes use of the written, verbal and non-verbal communication skills of the presenter.

Question 51

Formal report

Answer 51

An official document created by an enterprise, giving an account of a matter based on thorough investigation, analysis, and evaluation.

Question 52

Entrepreneurship education

Answer 52

Learning opportunities in schools and universities that provide both theoretical and practical learning experiences.

Question 53

Analysis

Answer 53

Involves selecting, explaining, and interpreting information to break down an issue into smaller parts.

Question 54

Evaluation

Answer 54

Requires making a judgment or decision based on evidence and reasoned explanations.