SETTING UP AND ENTERPRISE
OPPORTUNITIES AND RISKS
NEGOTIATION
FINANCE
BUSINESS PLANNING
100
What is enterprise?
It is is a willingness by an individual or a business to take risks, show initiative and undertake new ventures.
100
What is risk assesment?
The capacity to determine the likelihood and magnitude of impact of the risk, the determination of a response strategy, and the creation of a monitoring progress.
100
What is negotiation?
Negotiation is an interaction of influences, including: • the process of resolving disputes • agreeing upon courses of action • bargaining for individual or collective advantage ...
100
What is cash flow?
Money coming in and out of the business
100
Why is a business plan important?
they provide a framework for the owner to work to. Research shows that those businesses that produce detailed plans are far more likely to succeed than when only a sketchy plan or no plan at all is prepared. Let you do predictions about cash flow, break even and profit and loss to be able to raise funds
200
What is a SWOT analysis?
A type of analysis that lets you identify what makes a product/service/business different to its competitors.
200
Mention three changes in society that can be considered opportunities for an enterprise to arise.
changes in taste and fashion, in the size and structure of population, changes in real income
200
in many enterprising situations, it is important to take into account the views and interests of all the parts involved. "all the parts" or "all the groups of people involved" are called
Stakeholders.
200
Difference between creditor and debtor.
Creditor: A person or company to whom money is owed. Debtor: A person or institution that owes a sum of money.
200
What is a business plan?
It is a description of a business and its plans for the next one to three years. The plan sets out the means by which an organisation will achieve its objectives
300
Mention three famous entrepeneurs.
Steve Jobs, Bill Gates, Anita Roddick, Richard Branson...
300
This initiative encourages businesses and consumers to support fairer trade and purchase fair trade products.
Fair trade organization
300
How many possible outcomes are there in a negotiation?
Four
300
Mention 3 sources of finance
- banks and other financial institutions • community sources • family and friends • government grants and subsidies • personal savings • private institutions, e.g. venture capital trusts • shares in limited companies.
300
Three business objectives
Profit, growth, survival, sales revenue, satisfying, environmental, ethical.
400
Mention three entrepeneurial skills that start with the letters: L, S, T or C.
Leadership, self confidence, team building, taking initiative, creativity, taking responsibility...
400
What is the meaning of PESTEL analysis?
Is a mean to identify risks. Its letters stand for Political, Economical, Social, Technological, Environmental and Legal.
400
This is money that is borrowed from a bank or other financial organisation to start a business or buy an expensive item. It is paid back with interest.
Loan
400
What is the difference between investment and saving¨?
Investment is expenditure on capital goods, including buildings, equipment, machinery and tools, new shares, etc. Saving is money which is not spent, including bank accounts, keeping money in the house, government bonds, etc.
400
Objectives need to be SMART. What does SMART mean?
• Specific • Measurable • Achievable • Realistic • Time-Constrained
500
This is an enterprise owned by shareholders. There are 2 types it: private (LTD) and public (PLC)
Limited company
500
Employment law relates to the way that enterprises treat their workers. It includes: (mention 3)
Maternity leave, holidays, minimum wage, discrimination, retirement.
500
Mention two rules that are important before starting a process of negotiation.
• Be clear in your mind what you are trying to achieve. • Sort out the information that will be used in the negotiation – decide if it is useful and relevant. • Write down any strengths and weaknesses. • Consider what you are going to say when others put forward their view. • List the benefits that others will gain if they go with your idea/view. • Do think about what you are going to say and how you are going to say it. • Do you know who you’re negotiating with? • Have you chosen an appropriate negotiating style? • Do you know what you want to achieve? What are you objectives?
500
What is profit, net profit and gross profit?
Profit is all the sales revenue for the financial year. Gross profit is: Sales Revenue – Cost of Sales Net profit is: Gross profit- final expenses
500
Mention the difference between aim and objective.
Aims are the long term goals of the enterprise. Objectives are the specific, measurable targets to help a business achieve an aim.
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