Y12: Role of an entrepreneur

A business is an organisation that exists to provide ____

• goods and services on a commercial basis to shareholders.

• goods and services on a commercial basis to customers.

• goods and services on a commercial basis to employees.

• goods and services on a commercial basis to sole traders

Benefits of business to society include:

• It helps the United Kingdom to increase unemployment rates.

• The widening of the income gap.

• Create Employment & Develop Human Capital

• Less taxes collected by the government to pay for social services.

The creation of a business is

• to meet the needs and wants of intrapreneurs.

• to meet the needs and wants of employees.

• to meet the needs and wants of customers.

• to meet the needs and wants of HR.

What is an Entrepreneur?

• A person who takes the risk in starting a new business

• A new business enterprise, formed by one or more entrepreneurs

• It is a source of finance needed to set up an enterprise.

• It is an indirect tax, which is imposed on goods and services

Which of the following is not a type of business ownership?

• Sole trader

• Limited company

• Intrapreneur

• Partnership

What is an intrapreneur?

• It is an individual who owns shares in a company.

• It is a form of business ownership.

• An employee who is tasked with developing an innovative idea or project within a company.

• A person responsible for all things worker-related.

What is risk?

• The chance that money invested in the business will be lost

• The chance that money invested in the business will be returned.

• The probability that things will go as well as planned

• It is the return on investment received after an investment in a project

How do successful entrepreneurs deal with risk?

• Avoid investing in projects with a high return

• Look for lower returns to take account of the risks

• Avoid diversifying to minimise risk

• Take calculated risks

What are the rewards for an entrepreneur?

• A guaranteed, risk free income

• Working minimal hours

• Making a loss

• Satisfaction from building something

What % of new businesses fail during the first two years of trading?

• 80%

• 15%

• 60%

• 30%