Entrepreneurial Qualities
What entrepreneurial quality describes the willingness to continue working towards a goal even when difficulties occur?
Perseverance
What success factor refers to a business earning more income than its expenses?
Profitability
What document explains the specific activities required to achieve a business objective?
Action plan
What planning tool displays project activities against a time scale using bars?
Gantt chart
What is money contributed by owners or investors in exchange for ownership called?
Equity capital
What entrepreneurial quality is shown when an entrepreneur invests money in a new product even though there is no guarantee that customers will buy it?
Risk-taking
What success factor refers to the ability of a business to continue operating successfully over the long term?
Sustainability
Name two components that should appear in an action plan.
Any two: activities/tasks, responsibilities, deadlines, resources, expected outcomes, monitoring.
What planning tool divides a large project into smaller tasks and sub-tasks?
Work Breakdown Structure (WBS)
What is money borrowed by a business and normally repaid with interest called?
Debt capital
What entrepreneurial quality is shown when an entrepreneur changes the business to meet changing customer needs?
Adaptability / flexibility
What term describes the customers who regularly buy from a business?
Customer base
A business plan explains what the business intends to achieve. What does an action plan explain?
How the business will achieve or implement its objectives.
What is a milestone in project planning?
An important stage or point showing that a major part of the project has been completed.
Give one advantage of using personal savings to finance a business.
Any one: no interest, no monthly loan repayment, owner retains control, fewer application procedures.
Give two entrepreneurial qualities that may help an entrepreneur successfully manage employees.
Any two relevant qualities such as good management, leadership, communication, confidence or perseverance.
A restaurant is always busy, but its expenses are greater than its income. Is it necessarily successful?
No. High sales or customer numbers do not guarantee profitability because expenses may exceed income.
Why is it important to allocate a responsible person to every activity in an action plan?
It creates accountability, reduces confusion and helps ensure tasks are completed.
Why might two activities take place at the same time on a Gantt chart?
Because some activities can overlap and be completed simultaneously.
An entrepreneur receives R50 000 from an investor in exchange for 25% ownership. Is this equity capital or debt capital?
Equity capital
A business owner refuses to change a product despite repeated customer complaints. Identify the entrepreneurial quality that is lacking and explain one possible consequence.
Adaptability/flexibility is lacking. The business may lose customers because it does not respond to their needs.
Name three areas that could be examined when critically reflecting on the success of a business.
Any three relevant areas such as profitability, sustainability, customer base, management, customer service, quality, employee performance or financial management.
A business wants to open a new shop in four weeks. Give four activities that could appear in its action plan.
Any four appropriate activities such as finding premises, obtaining funding, identifying suppliers, purchasing stock, employing staff, advertising, preparing premises or obtaining permission.
Arrange these activities in the most logical order:
Explain why taking a large loan may be risky for a new business with uncertain income.
Loan repayments and interest must still be paid even when sales are low, which may create cash-flow problems and threaten sustainability.