m Flashcards
(34 cards)
What is entrepreneurship?
Entrepreneurship is defined as the process of taking risks to start a business while fulfilling a market need.
Who are entrepreneurs?
Entrepreneurs are individuals who initiate and manage a business venture, often with the hope of making a profit.
What role does innovation play in entrepreneurship?
The role of an entrepreneur involves innovation, as they create new products or services to meet consumer demands.
What are key characteristics of entrepreneurs?
Entrepreneurs typically exhibit strong leadership skills, interpersonal skills, and effective communication.
What risks are associated with starting a business?
Starting a business involves significant risks, including financial loss and market competition.
What are potential rewards of successful entrepreneurship?
Successful entrepreneurs can achieve substantial profits, but they must navigate uncertainties in the market.
What is a sole trader?
A sole trader is a business owned and operated by a single individual who retains all profits.
What are the advantages of being a sole trader?
This structure allows for complete control over business decisions, making it simpler to manage.
What is the main disadvantage of being a sole trader?
The sole trader faces unlimited liability, meaning personal assets are at risk if the business fails.
What is a partnership?
A partnership consists of 2-20 owners who share responsibilities and profits.
What are the benefits of a partnership?
This structure allows for more capital and resources, as partners can pool their investments.
What challenges may arise in a partnership?
Conflicts may arise in decision-making, requiring clear communication and agreements among partners.
What is a private limited company (Ltd)?
A private limited company must have at least one director and can have multiple shareholders.
What is the advantage of a private limited company?
This structure provides limited liability, protecting personal assets from business debts.
What is a publicly listed company?
A publicly listed company must have a minimum of three directors and can have unlimited shareholders.
What is a benefit of being a publicly listed company?
This structure allows for raising significant capital through the sale of shares on the stock market.
What is an online business?
Online businesses sell goods and services over the internet, utilizing platforms like eBay or Amazon.
What is the merchant model?
The merchant model involves direct sales to customers through a business website.
What is the advertising model?
In the advertising model, businesses earn revenue by allowing advertisers to promote their products on their platforms.
How do businesses positively impact the economy?
Businesses contribute to low unemployment rates, boost GDP, and pay taxes that support public services.
What social contributions can businesses make?
Businesses can support social causes and engage in corporate social responsibility initiatives.
What are natural resources in business?
Natural resources are materials obtained from the environment, essential for creating goods and services.
What are labor resources?
Labor resources refer to the human workforce that provides skills and knowledge necessary for production.
What are capital resources?
Capital resources are man-made goods used in the production of other goods and services, such as machinery and tools.
