Enterprise

Question 1

purpose of business activity?

Answer 1

A business is an organization that uses resources to meet the needs of the customer by providing a product or service that they demand.

Question 2

entrepreneur

Answer 2

an individual who has an idea for a business starts it up and carries most of the risks but benefits from the rewards.

Question 3

customer

Answer 3

an individual consumer or organisation that purchases goods and services from a business.

Question 4

what do businesses do ?

Answer 4

1. businesses identify customer needs.
2. They purchase resources to allow production to take place.
3. satisfy customer needs by providing goods and services which they demand with an aim of making a profit.

Question 5

consumer

Answer 5

an individual who purchases goods and services for personal use.

Question 6

consumer goods

Answer 6

physical and tangible goods which are sold to the consumer and are not intended for resale. includes durable and non-durable consumer goods.

Question 7

consumer services

Answer 7

the non-tangible products sold to consumer which are not intended for resale. e.g hotel accomodation, train journey and insurance services.

Question 8

factors of production

Answer 8

the resources needed by a business to produce goods and services.
1.Land
includes the land itself and all the renewable and non-renewable resources of nature.
2.Labour
manual and skilled labour that make up the workforce of business.
3.Capital
man-made things use in production of other goods and services.
4.Enterprise
the action of showing initiative to take risk to set up a business.

Question 9

capital goods

Answer 9

the physical goods used by industry to aid in the production of other goods and services such as machines.

Question 10

adding value

Answer 10

increasing the difference between the cost of bought in in-puts and the selling price of finished goods.

Question 11

branding

Answer 11

the process of differentiating a product by giving it a name, symbol, image, or trademark for it.

Question 12

opportunity cost

Answer 12

the next most desired thing that is given up.

Question 13

change in business environment include.

i.e. business environment is very dynamic.

Answer 13

1. New competitors entering the market.
2. legal changes - exampled include new safety regulations or limits on who can buy the product.
3. economic changes that leave customers with less money to spend.
4. technological changes that make the products or processes of the new business outdated.

Question 14

Bonus concept
the dynamic business environment is a major cause of change within businesses. Decision-making by entrepreneurs is often focused on responding to change.

Answer 14

hello

Question 15

why do some businesses succeed?

Answer 15

1. Good understanding of customer needs - leads to sales target being achieved.
2. Efficient management of operations - keeps costs under control.
3. flexible decision making to adapt to new situations - allows investment in new business opportunities.
4. appropriate and sufficient sources of finance - prevents cash shortage and allows for expansion.

Question 16

why do businesses fail?

Answer 16

1. poor record keeping
   i. e. includes everything to be noted down because everything can’t be remembered. can be physical or computerized.
2. lack of cash flow
3. poor management skills

Question 17

how to reduce cash flow problems?

Answer 17

1. A cash flow forecast is made and kept up-to date. the cash needs of the business can be assessed month by month.
2. Sufficient capital is injected into the business at start-up allowing it to operate during the first months when cash flow from customers may be slow to build up.
3. Good relations are established with bank so that short-term cash problems may be financed with an overdraft extension.
4. There is effective credit control over customers accounts to make sure they pay on time.

Question 18

multinational company

Answer 18

A business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.

Question 19

intrapreneur

Answer 19

a business employee who takes direct responsibility for turning an idea into a profitable new product or business venture.

Question 20

the role of entrepreneur when creating and starting a new business.

Answer 20

1. have an idea for a new business.
2. create a business plan.
3. invest some of their own savings and capital.
4. accept the responsibility of managing the business.
5. accept the possible risks of failure.

Question 21

qualities of successful entrepreneurs.

Answer 21

Innovative
Committed and self-motivated.
Multi-skilled
Leadership skills
Self-confidence and an ability to bounce back
Risk-taking

Question 22

barriers to entrepreneurship

Answer 22

lack of business opportunities
obtaining sufficient capital
cost of good locations
lack of customer base
competition

Question 23

role of enterprise in a country’s economic development.

Answer 23

Employment creation
Economic growth 
Business survival and growth 
innovation and technological change       
Exports
personal development
Increased social cohesion

Question 24

the benefits of intapreneurship to existing business.

Answer 24

1. injecting creativity and innovation into the business.
2. Developing new ways of doing business.
3. Driving innovation and change with in business.
4. creating competitive advantage.
5. Encouraging original thinkers and innovators to stay in the business.

Question 25

Main elements of business plan.

Answer 25

1. executive summary - an overview of the new business and its strategies. 2. description of the business opportunity - details of the entrepreneur's skills and experience; nature of the product; the target market at which the product is aimed. 3. marketing and sales strategy - details of why the entrepreneur thinks customers will buy the product and how the business will sell them. 4. management team and personnel - details of entrepreneurs skills and experience and the people the intend to recruit. 5. operations - premises to be used, production facilities, IT systems. 6. financial forecasts- the future projections of sales, profit and cash flow for at least one year ahead.

Question 26

Benefits of business plan

Answer 26

forces owner to think seriously about the proposal, its strengths and possible weaknesses. gives the owner and manager a clear plan of action to guide there actions and decisions in the early month and years of the business.

Question 27

how to make a business plan succesful

Answer 27

include market research | include flexible decions to overcome the dynamic business model

Question 28

limitations of business plan

Answer 28

owners might rely to much in plan that they may overlook the fact that its based on preictions and forecasts. might lead entrepreneurs to be inflexible. if not includes market reseach delay in making finance decision until brought to standard.