UNIT 1 [emily]

Question 1

What is an entrepreneur?

Answer 1

A person how has a business idea and is willing to take a risk in order to make it work

Question 2

What are the main characteristics of an entrepreneur?

Answer 2

H- hardwork E- enthusiasum and inavation R- risk taking O - organised and planed E- effective leadership S- self belive

Question 3

Describe how losing time is a risk for starting a business:

Answer 3

The entrepreneur will have invested considerable sums of money in the new product or business if fails the money is lost and could bankrupt the entrepreneur.

Question 4

What is business ownership?

Answer 4

To have legal control over a business which gives the owner the legal right to make certain business decisions.

Question 5

Why do businesses start?

Answer 5

• They have a good idea for a product which they think will sell (started as a hobby or personal interest).
• They wish to be independent and be their own boss.
• They want to make money and keep the profits for themselves.
• They need a job and starting their own business keeps them in employment.
• They need a buzz and sense of satisfaction.
• They wish to provide a service to the community.

Question 6

Describe how making a profit is a reward:

Answer 6

A successful business with successful products can earn large profits for the entrepreneur . this usually leads to increase in sales with further opportunities for profit making

Question 7

How do businesses start?

Answer 7

The entrepreneur will find a gap in the market and Will decide to start a business

Question 8

Describe how becoming famous is a reward:

Answer 8

Successful entrepreneurs have become household names eg Sir Alan Sugar (Amstrand) and James Dyson (Dyson).

Question 9

Describe how satisfaction is a reward:

Answer 9

Success brings high levels of satisfaction and a sense of achievement foe the buzz and excitement make the risk worth while.

Question 10

Describe how independence is a reward:

Answer 10

Some people may want to be independent to own their own business, make their own decisions and be their own boss. Their independence is a reward for taking a risk.

Question 11

What are the 4 business resources?

Answer 11

C- Capital E- Enterprise L- Land L- Labour

Question 12

Define business resources:

Answer 12

These are the resources needed to provide goods and services . it is important to combined all the resources of the business.

Question 13

What is capital?

Answer 13

This is money or machinary with a business needs to operate.

Question 14

What is fixed capital?

Answer 14

The capital invested by the company in procuring the fixed assets required for business’ working. Includes factories and heavy machinery.

Question 15

What is working capital?

Answer 15

The company’s working capital is required to finance the day to day operations. This includes salaries and raw materials.

Question 16

What is enterprise?

Answer 16

Enterprise is done by the entrepreneur organises the factors of production, they take risks and have the ideas.

Question 17

What is land?

Answer 17

Natural resources which a business needs to operate. This would include land for buildings and natural resources like raw materials.

Question 18

What is labor?

Answer 18

People who work for the business these are needed to make all the product and sell them.

Question 19

Why does a business start?

Answer 19

They have a good idea for a product which they think will sell well. This may have started as a hobby or a personal interest.

Question 20

What is unlimited liability?

Answer 20

this means that if a sole tradors business fails then banks and suplisers will request the sole trador to immidaetly pay anny deats owned to them and ths can put thire asets at risk eg: home/car

Question 21

how dose a business start

Answer 21

dessin a business plan deside n the product and produce a model or prodatype

Question 22

3 characteristics of a plc

Answer 22

• has PLC after its name
• they are called public limited companies as anybody in the general public can now buy shares in the company through the stock market
• a public limited company is the largest type of private sector organization
• although its name is public it is in the private sector because it is owned by private people

Question 23

2 advantages of a plc

Answer 23

• the shareholders have limited liability
• shares can be sold o the stock exchange and so it is much easier for a PLC to raise large sums of money to expand (being bigger also allows a PLC to benefit from Economies

Question 24

how is finances an advantage of a sloe trador

Answer 24

all thier acconts are privet so no one or the comptators can see

Question 25

how is flexabilty an advantage

Answer 25

the sole trador cna set how meany hours and holidays .

Question 26

how is liabilaty a disaantage of a sole trador

Answer 26

unlimeted liabilty - have to come out of persal accsests

Question 27

how is lack of expertises v

Answer 27

not knowing what the sole trador and getting lost but also might only be good a a cirten section

Question 28

define partnership

Answer 28

a parnership constists of two pepole up to a maxum of 20 partners

Question 30

disadvantages of a plc

Answer 30

- because anyone can buy shares in a PLC through the stock exchange, there is a risk that it could be bought by another company (this is called a takeover)