Economics Exam

HideShow resource information
What is enterprise?
Enterprise is the business that the entreprenuer creates
1 of 30
What three trates are needed to be an entrepreneur
Risk taking, Showing initiative and willingness for new ventures
2 of 30
What is risk taking?
Enterprise involves an element of risk. If theyhave been planned for, they are usually easier to manage and address
3 of 30
What is showing inititative?
It is about making the first move, developing creative solutions to problems and thinking outside the box
4 of 30
What is willingness for new ventures
To be on the lookout for new opportunities. Should have courage to quit ventures that are less successful and pursue more successful ones
5 of 30
Three sources of business ideas?
Business experience, Personal experience or observations
6 of 30
Why is creative thinking important?
Gain competitive advantage, challenge entrepreneurs and keeps a business fresh
7 of 30
Three examples of deliberate creativity?
Mindmaps, lateral thinking and blue skies thinking
8 of 30
What does the red hat signify?
(Feelings) is about gut instinct, no reasons are given, hunches
9 of 30
What does the yellow hat signify?
(Optimism) Positives, plus points, why the idea is useful
10 of 30
What does the black hat signify?
(Cautions) Negitivity, why something wont work
11 of 30
What does the green hat signify?
(creativity) thinks of new ideas, solutions, alternatives
12 of 30
What does the white hat signify?
(Facts) calls for information, stats, etc
13 of 30
What does the blue hat signify?
(Thinking about thinking) manages the thinking process.
14 of 30
Definition of invention?
The discovery of new processes and potential new products, typically after a period of research
15 of 30
Definition of inonovation?
Improving an existing product, process or invention
16 of 30
What is product innovation?
Launching new/improved products or services onto the market
17 of 30
What is process innovation?
Finding better?more efficent ways of producing existing products/services
18 of 30
What is invention innovation?
Traansforming inventions into marketable products that can be sold
19 of 30
Three advantages of innovation?
Attracts new/repeat customers, competitive advantage and strong reputation/brand image
20 of 30
Three disadvantes of innovation?
Can be expensive, takes time, failure to live up to media hype
21 of 30
What do patents protect?
Inventions/innovations from being stolen, only apply to technology products/processes
22 of 30
What do copyrights protect?
Applies to music, film, book, etc (art)
23 of 30
What do trademarks protect?
Business names, logos, colours, etc
24 of 30
Why are business start ups risky?
There is a high rate of business failure in start ups (80% fail in 1st year), competitive response is aggressive, easy to be over- optimistic
25 of 30
Three main reasons why start-ups fail?
insufficent customer demand, good idea but poor execution, external shocks
26 of 30
What is a calculated risk?
A risk that has been given thoughtful consideration and for which the potential costs and benefits have been considered
27 of 30
Examples of financial rewards?
Profits,dividends and capital growth
28 of 30
Examples of non-financial rewards?
being in control, satisfaction and getting good feedback
29 of 30
What is viability?
the outcome of risk analysis. It helps the decision of whether to go ahead or not
30 of 30

Other cards in this set

Card 2

Front

What three trates are needed to be an entrepreneur

Back

Risk taking, Showing initiative and willingness for new ventures

Card 3

Front

What is risk taking?

Back

Preview of the front of card 3

Card 4

Front

What is showing inititative?

Back

Preview of the front of card 4

Card 5

Front

What is willingness for new ventures

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies & Economics resources:

See all Business Studies & Economics resources »See all What is enterprise? resources »