Theme 1 - section 5 (Entrepreneurs and Leaders)

Question 1

what is an entrepreneur ?

Answer 1

a person who sets up a business. They take on the risks of new business activity with the aim of gaining a reward.

Question 2

What are the key roles of an entrepreneur

Answer 2

• creating
• setting up
• developing
• bringing innovation
• overcoming barriers
• anticipating risk and uncertiancies.

Question 3

before creating a business you need to …..

Answer 3

• identify a gap in the market
• complete market research
• have a good business idea
• Consider the marketing mix
• Raise money
• Legal ownership
• plan financial requirements

Question 4

When running a business you need to consider……..

Answer 4

• keeping up to date ( law, sales, marketing , accounting )
• contiunue doing market research
• set aims ad objectives
• monitor performance
• hiring employees

Question 5

When bringing innovation to the business world you need to consider …….

Answer 5

• Think of new products
• take risks
• experiment
• Find most productive / efficient ways of completeing tasks

Question 6

What is intrapreneurship ?

Answer 6

when an employee shows the skills of an entrepreneur.

Question 7

Barriers that entrepreneures need to overcome …..

Answer 7

• Raising capital
• Dealing with lack of money
• Lacking confidence
• Beliveing in his or her idea
• Training how to run a business

Question 8

What is entepeneurial capacity ?

Answer 8

Businesses ability to identify growth and development oppotunities, and use its resources creatively to pursue these.

Question 9

Characteristics of an entepreneur….

Answer 9

• Someone with initiative
• Hard working
• Creative
• Self confident
• A risk taker
• Resilient

Question 10

Skills an entrepreneur may posses…..

Answer 10

• Communication skills
• Team working skills
• Problem solving skills
• Organisational skills
• IT skills

Question 11

What is profit maximisation ?

Answer 11

Making as much profit as possible. Reducing costs to their minmum and increasing sales revenue to its maximum.

Question 12

What is profit satisficing ?

Answer 12

Making enough profit but not looking to maximise it.
It involes maintaining an enjoyable lifestyle without having to maximise profit.

Question 13

When businesses grow entrepreneurs need to develop into leaders, and need to be able to do things such as……

Answer 13

• Delegate responsibilty
• Develop emotional intelligence
• Become less reactive

Question 14

What is an objective ?

Answer 14

a target or a goal set by a business to achive in the short / medium term, to achive a aim.

Question 15

What is the most important short - term business objective ?

Answer 15

Survival

Question 16

sales maximisation objectives can help to boost …..

Answer 16

Revenue

Question 16

Increasing market share can also increase …..

Answer 16

revenue

Question 17

improving cost efficiency focuses on …..

Answer 17

Saving money for the business by reeducing unit costs.

Question 18

Improving emplyee welfare can lead to …….

Answer 18

Lower costs and more sales.

Question 19

What is a sole trader ?

Answer 19

A sole trader is a type of business owned and operated by one individual who has full control and keeps all profits but also has unlimited liability.

Question 20

Advantages of sole trader

Answer 20

• Freedom
• Profit
• Simplicity
• Saving on fees

Question 21

Disadvantages of sole traders

Answer 21

• Risk
• Time
• Expertise
• Vulnerability
• Unlimited liability

Question 22

What is a partnership

Answer 22

A partnership is a business owned and run by two or more people who share the profits and responsibilities.

Question 23

Advantages of a partnership

Answer 23

• Partners can bring different skills and ideas, which can help the business run better.
• Workload and responsibilities can be shared, reducing stress on one person.
• More capital (money) can be invested into the business than a sole trader might manage.

Question 24

Disadvantages of a partnership

Answer 24

- Profits must be shared between the partners. - Disagreements or conflicts between partners can affect decision-making. - Each partner has unlimited liability, meaning they are personally responsible for debts.

Question 25

What is a Private limited company ?

Answer 25

A private limited company (Ltd) is a type of business that is owned by shareholders but does not sell its shares to the public. It has limited liability, meaning the owners are only responsible for the money they invest.

Question 26

Advantages of a private limited company

Answer 26

- Limited liability protects the personal assets of shareholders. - The business can raise capital by selling shares to family or friends. - The company has a separate legal identity from its owners.

Question 27

Disadvantages of a private limited company

Answer 27

- Shares cannot be sold to the public, so raising large amounts of money can be harder. - More legal and financial paperwork than sole traders or partnerships. - Profits are shared between shareholders as dividends.

Question 28

What is a public limited company ?

Answer 28

A public limited company (Plc) is a business that sells its shares to the public on the stock exchange. It has limited liability and a separate legal identity.

Question 29

Advantages of a public limited company

Answer 29

- Can raise large amounts of capital by selling shares to the public. - Limited liability protects shareholders' personal assets. - Often seen as more established and trustworthy by banks and investors.

Question 30

Disadvantages of a public limited company

Answer 30

- Can be taken over if someone buys enough shares. - Must publish financial information, which reduces privacy. - More rules and legal requirements to follow (e.g. from the stock exchange and government).

Question 31

What is a franchise

Answer 31

An agreement which allows an entrepreneur to use the name , business idea, model and reputation of an established company.

Question 32

What is an online business

Answer 32

A business that trades through the internet.

Question 33

What is a social enterprise ?

Answer 33

A business which is set up with its core aims to use its profits to benefit sociaty in some way.

Question 34

What is a trade off ?

Answer 34

A trade-off is when a business has to choose between two options, knowing that gaining more of one thing means having less of another.

Question 35

What is an opportunity cost

Answer 35

Opportunity cost is the next best alternative that is given up when a decision is made. Example (to help with application): If a business spends £10,000 on new machinery instead of marketing, the opportunity cost is the potential sales or brand awareness they could have gained from marketing.