1.5 Entrepreneurs and leaders

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What do entrepreneurs need to run a successful business?
Ability to obtain and listen to objectives, eye for detail, think strategically, love what you are doing
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What are the barriers to being an entrepreneur?
Banks less willing to invest in small firms, employees find it hard to trust an entrepreneur
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How can you anticipate risk and uncertainty?
It is important to try and quantify it
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What characteristics and skills are required to be an entrepreneur?
An understanding of the market, determination, passion, resilience, ability to bounce back, ability to cope with risk
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Why do people set up businesses?
profit maximisation, profit satisficing (best profit), ethical stance, independence and home working
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What are some business objectives?
Survival, profit maximisation, sales maximisation, market share, cost efficiency, employee welfare, customer satisfaction, social objectives
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What is unlimited liability?
The finances of the business are treated as inseparable from the finances of the business owners
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What is a sole trader?
An individual who owns and operates his or her own business. If the business goes bankrupt, the sole trader goes bankrupt
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What is a partnership?
Exists when two or more people start a business without forming a company. The individuals have unlimited liability for any debts run up by the business
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What is limited liability?
Means that the legal duty to pay debts run up by the business stays with the business itself, not its owner/shareholders
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What are the advantages of a limited company?
Shareholders experience the benefits of limited liability, a limited company able to gain a wider range of borrowing
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What are the disadvantages of a limited company?
Must make financial records public, limited companies have to follow more and more expensive rules than unlimited liability companies
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What is a private limited company?
The shares of the company can't be bought and sold without the agreement of the other directors.
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How does a company float on the stock market?
When a private limited company expands to having share capital above £50,000 it can be floated on the stock market so the public can buy it
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What is franchising?
An entrepreneur using another companies name and resources
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What are the disadvantages of franchising?
The entrepreneur will not truly be their own boss, the entrepreneur doesn't make key decisions, the franchise gets a large slice out of the income
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What are the advantages of franchising?
Can be said to be training to a full entrepreneur, very few make it on their own, easier to get a loan
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What is a social enterprise?
Nothing more than claiming to do good
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What is a lifestyle business?
Having a true love for the business, aiming more to sell not profit
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What is an online business?
A business online, investment is less about money and more about time and effort programming
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Other cards in this set

Card 2

Front

What are the barriers to being an entrepreneur?

Back

Banks less willing to invest in small firms, employees find it hard to trust an entrepreneur

Card 3

Front

How can you anticipate risk and uncertainty?

Back

Preview of the front of card 3

Card 4

Front

What characteristics and skills are required to be an entrepreneur?

Back

Preview of the front of card 4

Card 5

Front

Why do people set up businesses?

Back

Preview of the front of card 5
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