Booklet 1 Flashcards
What is an SME?
Small and Medium sized Enterprise’s.
What is a Need?
A human requirement which must be satisfied for survival. Eg Food and Water.
What is a Want?
Human desires which are unlimited and change frequently with fashion.
What are the characteristics of an Entrepreneur?
Being a Risk Taker. Taking initiative. Being Pro-Active. Being an Effective Organiser. Having Creativity and Being innovative. Hard Worker. Determined. Perseverance.
Why do people start their own Business?
To gain profit.
To turn a hobby into a job.
To use redundancy money.
To be their own boss.
What is an Enterprise?
Another name for a business. The action of someone who shows initiative by taking a risk.
What is an Entrepreneur?
Someone who starts and runs a business.
5 main components of a business plan.
Executive summary. Marketing plan. Operations plan. Human resources plan. Financial plan.
Benefits of a Business Plan.
Clear set of instructions on how to run the business. Progression Checker. More Capital availability from banks and lenders.
Drawbacks of a business plan.
Research costs time and money. Mostly guess work. Poor guess work could cause unwise investments.
What is the Primary Sector?
Extracting Raw Materials at source, eg coal from a mine.
What is the secondary sector?
The manufacturing of a product by using the raw materials, eg Car Factory.
What is the Tertiary Sector?
Providing Goods and Products to the general public, eg Gyms.
