Chapter 3

Question 1

What is entrepreneurship in

Answer 1

It is a process through which individuals identity opportunities allocate resources and create value through business ownership

Question 2

What are the functions of an entrepreneur

Answer 2

Conceptualizing
Planning
Accessing finance
Organizing
Operating business
Risk bearing
Making a profit and managing loss

Question 3

What is conceptualizing

Answer 3

Development of business ideas and visions into a working business to generate a profit

Understanding your consumers needs and wants and how businesses will deliver

Researching all aspects of the business idea : financing,consumer preferences, advertising

Question 4

What is planning

Answer 4

Gathering necessary resources and organize them efficiently so production can flow

Proper planning can guard against business failure

Forecasting is an important aspect of business planning

Question 5

What is accessing finance

Answer 5

Identifying where finance can be obtained to start a business

Personal savings,loans and fundraisers

Question 6

What is organizing

Answer 6

Organizing business resources to get the best product to customers should be priority for the entrepreneur

Question 7

How do you operate a business

Answer 7

To operate a business you need a good management team

Question 8

How do you evaluate a business

Answer 8

The performance of the business must be monitored and assessed against targets or plans

Question 9

What is risk bearing

Answer 9

Taken the necessary steps or risk needed to ensure success for your business

Question 10

What is collateral

Answer 10

Possessions or physical and financial assets of value that can be sold off to raise cash to repay a loan

Question 11

What is collateral used for

Answer 11

Collateral is used as a financial back up when taking out a loan

Question 12

What is a secured loan

Answer 12

It allows the lender to take possession of assets if the borrower is unable to repay the loan

Question 13

What are characteristics of entrepreneurs

Answer 13

Work hard
Be well organised
Willing to take risk

Question 14

What does being creative have to do with entrepreneurship

Answer 14

A good entrepreneur will have imagination and a vision turning their ideas to reality

Question 15

What does being innovation have to do with entrepreneurship

Answer 15

The ability to invent and develope new ideas and design

Question 16

What does being flexibility have to do with entrepreneurship

Answer 16

It is important to be adaptable to be able to deal with any changing situations