Enterprising I
A person who identifies business opportunities and utilizes creativity while assuming risks to provide goods and services for prospective customers.
What/Who is an entrepreneur?
Entrepreneurs must assume the uncertainty caused by an unknown future.
What is this also known as?
What is risk / business risk ?
Define a contract.
A legally enforceable agreement between two or more parties.
A legally binding agreement between two or more parties with pre-defined terms for execution.
A binding agreement that has the elements of an offer, acceptance of the offer and beneficial exchange of value (consideration) between parties.
Here, something of value is given by each party in exchange for a promise (e.g., money paid for a service or goods provided for a fee).
What is this called?
What is consideration?
Which of the following describes "collateral"?
a) A loan from a friend.
b) An asset used to secure a loan.
c) The total profit of a business.
d) A type of business tax.
What is b) An asset used to secure a loan?
This involves spotting "gaps" in the market—unmet customer needs and wants—and setting up a business to fill those gaps profitably.
What is the process of entrepreneurship?
Creative, innovative, flexible, and goal-oriented.
What do these relate to?
What are traits of an entrepreneur?
State the 2 types of contracts and their key differences between them.
The two types are simple contracts, which can be written, verbal, or implied, and
Specialty contracts, which are formal documents that must be signed, sealed, and delivered.
It refers to the legal capacity of the persons entering the contract. For example, they must usually be of legal age and of sound mind.
What is "competence of parties"?
A business owner is planning for the next 5 to 10 years. This is considered:
a) Short-term planning.
b) Medium-term planning.
c) Long-term planning.
d) Operational planning.
What is c) Long-term planning?
List 3 functions of an entrepreneur.
Conceptualizing, Planning, Accessing funds,
Organizing, Operating, and Evaluating the performance of a business.
A desire for financial independence, self-fulfillment/self-actualization, and increased control over their working life.
What are reasons referring to?
What are the reasons why a someone will want to open their own business?
What are the four essential characteristics of a simple contract?
They are: offer and acceptance, competence of parties (contractual capacity), intention to create legal relations, and consideration.
It refers to the circumstances under which the legal obligations of a contract come to an end.
What is to breach OR discharge OR terminate a contract?
List three different types of assets that can be evaluated as collateral.
Property - land, building, equipment
Money/Cash, Motor Vehicles, Appliances
Insurance Policy/Cash Surrender Insurance
Stocks, Shares, Government Bonds etc
This involves time management and organizational skills to take a business idea from conception to reality. Success is often highly dependent on initial planning.
What is planning?
One way the entrepreneur contributes to "economic development"
By establishing businesses, entrepreneurs provide; Employment for residents, allowing them to support themselves and their families.
Provides training and educational opportunities for workers in their employ, increasing technical skills of a people and marketability.
State the difference between an offer and acceptance?
An offer is a proposal made by one party (the offeror) to another (the offeree) indicating a willingness to enter into a contract on specific terms.
cceptance is the unconditional agreement to all the terms of the offer. It must be communicated to the offeror to take effect.
Explain breach of contract.
A breach occurs when one party fails to fulfill their part of the agreement. This may give the other party the right to terminate the contract and seek remedies like damages.
Outline four factors that an entrepreneur should consider when choosing a location for a manufacturing plant.
Availability of Raw Materials, Geographical factors
Power & Water/Utilities Supply, Health Facilities
Telecommunications Network, Infrastructure
Transport, Labour Supply, Government Regulations
Describe the entrepreneur’s role in the decision-making process.
The entrepreneur is the final decision-maker, using organizational skills to determine how factors of production are used, how the business operates, and how to respond to market trends.
Name 2 ways the entrepreneur contributes to nation-building?
Entrepreneurs contribute by
Providing goods and services to citizens,
Paying taxes to the government for community development, and
Engaging in corporate social responsibility.
When an offeree suggests different terms to an offer. This is known as ___________ . It terminates the original offer and becomes a new offer that the original offeror can then accept or reject.
What is a counter-offer?
When an unforeseen event occurs after the contract is made that makes it physically or legally impossible to carry out (e.g., the destruction of the subject matter).
This known as discharging by___________?
What is discharging by "impossibility"?
A government policy that adjusts tax rates to influence the economy is known as:
a) Monetary policy.
b) Consumer protection policy.
c) Environmental policy.
d) Fiscal policy.
What is a) Monetary policy?