topic 1.3.5 Flashcards
(20 cards)
what is an entrepreneur?
an individual who spots a business oppertunity and takes risks to hopefully gain a reward
what are the roles of an entrepreneur?
creating and starting a business
running and expanding a business
innovating within a business
anticipating risks and uncertainties
What are personal financial and nonfinancial objectives?
financial = profit maximization, profit satisfaisant
non financial = ethics, independance and control
what is profit maximization?
getting as much money and profit as possible
what is profit satisfying ?
make enough money to live a good quality life
attributes and skills an entrepreneur needs?
creativity
resilience
risk taking
organisation
determination
what are the business objectives?
survival - break even
profit maximisation
sales maximisation
market share
cost efficiency
customer satisfaction
social objective
what is limited and unlimited liability?
limited liability - business owners are only responsible for business debts seperate legal identity
unlimited liability – owners that are responsi le for all debt
what is sole trader and the adv and dis?
sole trader—business owned and run by one person
adv - easy to set up, all profit to himself
dis- unlimited liability
what is partnership and the adv and dis?
Partnership – 2 to 20 people share responsibility of the business
adv – extra set of hand
dis-shared profits
what is private limited company and what are the adv and dis?
private limited comapny - a registered under private ownership
adv- limited liability
dis- anyone can see financial statements
what is public limited company and what are the adv and dis?
public limited company - a registered copany that has been floted on the stock market
adv- limited liability
dis- may lose some control in organisation
what is a franchise?
where a franchisor allows a franchisee run an outlet of the business
what is a franchisee?
an individual or business that buys the right to operate the franchised business
what is a franchisor?
the og business or company that owns the brand
what is social enterprise?
a business that exist for a social ethical purpose
what are the business choices?
oppertunity costs and trade offs
what are opportunity costs?
the value of the option not taken when a business makes a decision
what is trade offs?
chosing one thing causing you to give up or sacrifice the other
what are the skills needed when moving from an entrepreneur to a leader?
letting go of control
strategic thinking
trust others with key tasks
