Entrepreneurship
The term entrepreneur is defined as
A person who takes the risks involved in managing a business.
These include systems such as transport networks, sewage, waste water, power supplies and technical systems such as IT and communications. - WHICH FACTOR IS BEING DESCRIBED HERE?
INFRASTRUCTURE
When should the feasibility study be prepared?
BEFORE THE BUSINESS PLAN
Collater is defined as
An item of value pledged as security for a loan by a borrower to a financial institution.
Planning is important because
It gives direction to the business
Forces managers to look ahead
Helps avoids mistakes
It sets a standard
Four personal traits of an entrepreneur are
Creative, Innovative, Flexible, Goal-oriented,
Persistent, Persevering, Propensity to take calculated risks
Availability of suitable land, how much it costs and its position in relation to facilities such as transport, waste disposal and closeness to customers and suitable labour. - Which factor is being described here.
GEOGRAPHICAL FACTOR
What is a feasibility study?
A FEASIBILITY STUDY is a piece of research used to
find out whether a business idea is viable or if it will
work.
The VALUE OF COLLATERAL to the borrower is that it gains access to funds that they would probably not have had were it not for the collateral.
IS THIS STATEMENT TRUE OR FALSE?
THIS STATEMENT IS TRUE
Another term used to describe Short Term plans
OPERATIONAL
What is conceptualization?
It means to come up with a new business idea or concept.
Locating your business near to good transport facilities and their terminals is very important. - WHICH FACTOR IS BEING DESCRIBED HERE?
TRANSPORT
What is the aim of the feasibility study?
It aims to identify the STRENGTHS and
WEAKNESSES of the idea to see if it should be done.
What happens to the collateral if a borrower is unable to repay his/her debt?
Under this circumstance, the lender can take possession of the collateral used to secure the loan and sell the items.
Another term used to define medium-term plans
TACTICAL
The four factors of production entrepreneurs need to take into consideration are;
Land, Labour, Capital, Enterprise
Availability of suitable labour with the right skills is important to a business. This will be influenced by the social amenities such as education, housing and health facilities. - WHICH FACTOR IS BEING DESCRIBED HERE?
LABOUR SUPPLY
Why is the FEASIBILITY STUDY important?
A. To ascertain (determine) the viability of the
business idea
B. To determine the possible costs attached to the
project
C. To determine possible sources of finance
Is COLLATERAL valuable to the person seeking a loan?
YES, collateral is a valuable asset to the person seeking a loan.
Another term used to describe long-term plans
STRATEGIC
When accessing funds for their business an entrepreneur can get it from various sources. List 3
Family and Friends
Loan from the bank
Government soft loans
Personal savings
They also need strong communication systems. It is
therefore important to set up in areas where communication is clear and reliable. - WHICH FACTOR IS BEING DESCRIBED HERE?
TELECOMMUNICATIONS
Whe prepares the feasibility study?
The entrepreneur
Who requires collateral and what items can be used as collateral?
Financial Institutions require collateral and cars, machinery, cash, land, houses can be used as collateral.
LONG TERM PLANS – form the basis for the
medium-term plans, which in turn forms the
basis for short – term plans.
IS THIS STATEMENT TRUE OR FALSE.
TRUE