Content area 1

Question 1

Entrepreneur definition?

Answer 1

someone who takes a risk to set up their own business aiming to achieve profit

Question 2

What are stakeholders?

Answer 2

individuals with an interest in the business

Question 3

What are internal stakeholders?

Answer 3

people with a direct interest inside of the business e.g. employees, managers, owners

Question 4

What are external stakeholders?

Answer 4

people outside of the business with an interest e.g. suppliers, customers, government, shareholders

Question 5

What is a gap in the market?

Answer 5

an area in the market where demand for a service or product is not currently being met

Question 6

What is a target market?

Answer 6

the type of customer a business is targeting

Question 7

What is primary market research and some examples?

Answer 7

new research that a business undertakes itself e.g. face to face questionnaire, online questionnaire, face to face interviews, online questionnaires, disguised observations

Question 8

What is secondary market research and some example

Answer 8

gathering research that has already been produced by someone else e.g. social media, news articles, competitor data

Question 9

What is the marketing mix?

Answer 9

a tool used to attract customers to a business. they are price, product, place, promotion

Question 10

What are the 4 factors of production?

Answer 10

They are things people use to produce goods and services
land - natural resources used such as wood or oil, labour - people that work in the business, enterprise - having an idea of a product/service and capital - the money to produce the product

Question 11

What are entrepreneurial motivators?

Answer 11

What motivates an entrepreneur to start and continue to run a business e.g financial independence, creativity, job satisfaction

Question 12

What are entrepreneurial skills?

Answer 12

the skills and entrepreneur needs to be successful e.g. communication, finance, timekeeping, sales, management

Question 13

What are entrepreneurial attributes?

Answer 13

The characteristics of an entrepreneur e.g. independent, determined, risk taking, decision making

Question 14

What are aims and objectives?

Answer 14

aims - long term goals of the business
objectives - short term goals that must be achieved to reach the overall aim

Question 15

what is a mission statement?

Answer 15

states the purpose of the business and their intentions toward the customer

Question 16

What is revenue?

Answer 16

the money the business earns

Question 17

What are costs?

Answer 17

the money the business must pay out

Question 18

What is breakeven?

Answer 18

the point at which a business is not making a profit or a loss

Question 19

What are financial aims and objectives?

Answer 19

goals to improve the financial situation of the business e.g. reducing costs, increasing revenue, improving liquidity

Question 20

What is employee turnover?

Answer 20

the number of workers who leave a company over a certain period of time

Question 21

What is sustainability?

Answer 21

business does not use up or destroy natural resources

Question 22

What is retention?

Answer 22

keeping employees working for a bsuiness

Question 23

What is a sole trader?

Answer 23

one person who owns and runs their own business with unlimited liability

Question 24

What is a partnership?

Answer 24

a type of business that has a minimum of two owners that run a business between them.
they may choose to have a unlimited liability or a limited liability partnership

Question 25

What is a private limited company?

Answer 25

owned by shareholders who receives dividends as financial benefits. they have limited liability.

Question 26

What is a public limited company?

Answer 26

a company that sells shares to the public in the stock exchange. they have limited liability.

Question 27

what is a cooperative?

Answer 27

all owners are bosses who share responsibilities and profits. they have limited liability

Question 28

what is a franchise?

Answer 28

pays a fee to the owner to use the owners brand, products and their knowledge. limited liability

Question 29

What is a flat structure?

Answer 29

a structure with only a few layers of management so managers have a larger span of control

Question 30

what is a tall structure?

Answer 30

a top-down hierarchy with the owner/boss at the top

Question 31

what is the span of control?

Answer 31

the number of employees the manager is responsible for

Question 32

what is a delegation?

Answer 32

when someone receives responsibility for something, such as responsibility to complete a task

Question 33

what is a chain of command?

Answer 33

the route that instructions and communication flow from the top to the bottom of a business explaining who answers to who

Question 34

what is a restructure?

Answer 34

changing the organisational structure of the business

Question 35

what is delayering?

Answer 35

removing a layer of the hierarchy

Question 36

what is a change in the hierarchy order?

Answer 36

a change in the order of management

Question 37

what is communication?

Answer 37

sharing information successfully

Question 38

what is a merger?

Answer 38

two businesses merge and form a new entity

Question 39

what is a acquisition?

Answer 39

when a business takes over another business

Question 40

what is redundancy?

Answer 40

when employees lose their jobs

Question 41

what is a reorganisation?

Answer 41

when a business changes the way things are done, maybe to save money or increase sales

Question 42

what is stakeholder engagement?

Answer 42

when a business engages successfully with a stakeholder to improve their relationship

Question 43

what is stakeholder conflict?

Answer 43

when stakeholders want different things from the business and a conflict between stakeholders may occur