1.1 Enterprise and Entrepreneurship
What is one risk a business can face when starting?
- Business Failure
- Financial loss
- lack of security
What is an issue with the reliability of market research?
Mr Heffernan's discretion.
What is an expense (definition)?
An expense is anything outside of the cost of making the product.
Limited liability - owners only need to pay back the original investment if the business goes bankrupt.
Unlimited liability - owners may lose personal possessions if the business goes bankrupt.
What is a type of technology used in a business (based of the specification)?
- E-commerce
- Social Media
- Digital Communications
- Payment Systems
What are two rewards of starting a business?
- Profit
- Independence
What is the difference between short-term and long-term finance?
Short-term - under 90 days
Long-term - over 90 days
What is the definition of a franchise?
An existing business that grants permission to another individual to sell the products and operate under the name of the existing business.
What are the main principles of consumer law?
Quality and consumer rights
What are any of the main roles of an entrepreneur?
-Make Business decisions
- Take risks
What are the two methods of market research with an example for each?
Primary Research: Survey, Questionnaire, Focus Group, Observation
Secondary Research: Internet, Market reports, government reports
What is the different between net profit and gross profit?
List 2 businesses that are limited and unlimited liability (4 all up)
Limited: Private and Public
Unlimited: Sole Trader and Partnership
Name 3 different types of stakeholders.
- Shareholders
- Employees
- Customers
- Managers
- Suppliers
- Local Community
- Pressure Groups
- The Government
What are two things entrepreneurs can do to come up with a new business idea?
- Make an original Idea
- Apapt an existing idea.
List the 4 customer needs:
Price, Quality, Choice, Convenience.
How do you calculate the closing balance of a cash-flow forecast?
Net cash flow + Opening Balance
When locating their business, what do businesses want to be close too?
Market, Labour, Materials, Competitors.
What are the 4 principles covered in Consumer Law?
Recruitment, pay, discrimination, health and safety.
List all three reasons for a new business idea coming about.
- Changes in technology
- Changes in consumer wants
- Products/Services becoming obsolete.
What are the 5 market segments?
Location, Lifestyle, Income, Age, Demographics
List all the formulas for the following (100 points each/1 Sweet of each:
- Revenue
- Total Variable Costs
- Profit
- Interest
- Break-even
- Margin of Safety
Mr Heffernan will say if they are right.
List 5 items included in a business plan.
Idea, Aims and objectives, target market (with research), forecast revenue, cost and profit, cash-flow forecast, sources of finance, location, marketing mix.
List 5 economic factors that can affect a business.
Unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, and changes in exchange rates.