1 5 entrepreneurs and leaders

An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success.

True. Entrepreneurs take risks - financial, personal, or professional.

Intrapreneurship is the practice of promoting entrepreneurial thinking and behaviour among employees.

True. An entrepreneur may invest their life savings into a new venture or quit a secure job to start their own business.

Barriers to entrepreneurship include:

True. Intrapreneurship allows businesses to tap into the creative potential of their employees to generate new products or processes that can drive growth.

Risk is something an entrepreneur can plan for. Uncertainty is caused by unexpected factors outside of the entrepreneur's control.

False. Successful entrepreneurs can manage risk and quickly respond to uncertainty in the business environment.

Entrepreneurial capacity refers to an individual's ability to think creatively, take risks, identify and seize business opportunities.

False. A change in the political party governing the country is an example of an uncertainty.

Desirable entrepreneurial skills include:

True. Non-financial reasons for setting up a business include the owner's ethical beliefs and social entrepreneurship.

Profit maximisation is a relentless focus on making as much profit as possible by reducing costs and increasing sales revenue.

Initiative is the ability of an entrepreneur to use their judgement to make decisions and do things without needing to be told what to do.

Satisficing occurs when entrepreneurs do not relentlessly seek to maximise profits but rather focus on achieving an acceptable level of profit that meets their needs.

True. An ethical entrepreneur may adopt a positive stance towards environmental responsibility or social justice.

A social enterprise is a business that addresses a social or environmental problem while also generating an income for its owner.

True. Independence is often a key reason for setting up a business. Many people want to be their own boss and have control over their work.

Resilience is the ability to withstand or recover quickly from difficulties.

True. Advances in technology have meant starting and running businesses from home is easier, allowing flexibility and a better work-life balance.

False. The aim of most start-up businesses is to survive the initial entry into the market and to generate enough cash flow to remain in business.

Sales maximisation is a focus on generating the maximum revenue possible through the sale of products.

Market share is the proportion of the total market sales a business or brand controls.

True. Customer satisfaction can be achieved by delivering high-quality products.

Profit maximisation is the relentless focus on making as much profit as possible by reducing costs and increasing sales revenue.

Cost efficiency refers to a company's ability to produce and deliver its products at the lowest possible cost.

Employee welfare refers to how well a company takes care of its employees needs, including providing a safe working environment and prioritising their mental, emotional and physical health.

True. Meeting social objectives can help a business improve its reputation.

Prices should be lowered to achieve revenue maximisation when demand for products is price elastic.

A dividend is a sum of money paid each year by a company to its shareholders from its profits.

A sole trader is a business with a single owner, and it has unlimited liability.

True. Sole traders have unlimited liability, meaning the owner is personally responsible for debts the business incurs.

A partnership is a form of unlimited liability ownership where two or more people join together to form a business.

A private limited company is a limited liability business owned by shareholders, who can offer shares for sale privately, usually to friends and family or to venture capitalists.

False. A public limited company is known as a PLC.

A franchise is where an individual (franchisee) buys the rights to operate a business model from a larger company (franchisor). The franchisee receives the branding and business systems in exchange for an initial lump sum of money plus ongoing fees.

False. In a social enterprise, profits are usually reinvested back into the business or used to create positive social change or address an environmental issue.

Lifestyle businesses are typically small, owner-operated businesses that prioritise a specific lifestyle or personal interest of the owner over profits.

False. Online businesses often have low overhead costs and can operate from anywhere with an internet connection.

An initial public offering (IPO) is the process of a company transitioning from a private limited company (Ltd) to a public limited company (Plc) by offering its shares to the public for the first time.

Opportunity cost is the loss of the next best alternative when making a decision.

True. Choices have to be made due to scarcity.

True. Forgoing market research may help a business get its product to market quicker, though it may not fully meet customers' needs.

A trade-off occurs when two things cannot both be fully achieved; having more of one thing may mean having less of another.

False. The opportunity cost is the library funding as it represents the loss of the next best alternative.

A CEO is the chief executive officer, the highest-ranking person in a company, who is ultimately responsible for the business success.

True. Moving from an entrepreneur to a leader can be a challenging transition. The skills and mindset required to successfully launch and grow a business are often different from those required to lead and manage a team.

Delegation is where a manager gives authority to another person to carry out specific activities.

Emotional intelligence is the capacity to be aware of, control, and express one's emotions and to handle interpersona_l_ relationships effectively.

True. Entrepreneurs are often driven by their ideas and visions.

A figurehead is an individual that represents the organisation and motivates the team to achieve goals.

False. Many entrepreneurs are driven more by passion and enthusiasm than emotional intelligence.

A strategist is focused on setting goals and planning actions, while a tactician devises and implements short-term tactics to achieve goals.