AS Level Business Studies - Chapter 1 - The Enterprise

What are the key components of a business plan?

• Product design, Market Share, Description of the Business Opportunity, Human Resources, and Financial Audits.

• Executive Summary, Description of the Business Opportunity, Management and personnel, Marketing and Sales Strategy, Operations, Financial Projections

• Company mission, Sales Data, Employee Benefits, and Competitor Pricing.

• Executive Summary, Vision statement, Customer Demographics, Supply Chain Logistics, and Investment Options

Define the difference between an entrepreneur and an intrapreneur.

List three common reasons why businesses fail.

• 1. 1. High employee turnover

  2. 2. Lack of cash

  3. 3. Poor management skills

• 1. Poor management skills

  2. Poor record keeping

  3. Lack of cash

• 1. 1. Strong competition from established brands

  2. 2. Great management skills

  3. 3. Poor record keeping

• 1. 1. Excessive product variety

  2. 2. High employee turnover

  3. 3. Ineffective marketing strategies

How do individual choices influence economic outcomes?

• Individual choices have no effect on economic outcomes.

• Choices made by individuals directly impact supply and demand in the market.

• Economic outcomes are determined solely by government policies.

• Individual choices only affect personal finances, not the economy as a whole.

Explain the concept of opportunity cost with an example.

• The concept of opportunity cost is the value of the next best alternative that is forgone when making a decision.

• Opportunity cost is the amount of money spent on the chosen option.

• Opportunity cost is the total cost of a decision including all expenses.

• Opportunity cost refers to the time spent on a decision rather than its financial implications.

What distinguishes local, national, and international businesses?

• Local businesses operate globally, national businesses serve a specific area, and international businesses serve a country.

• Local businesses are franchises, national businesses are sole proprietorships, and international businesses are partnerships.

• Local businesses serve multiple countries, national businesses serve regions, and international businesses serve local areas.

• Local businesses serve a specific area, national businesses serve a country, and international businesses operate globally.

What are three essential traits that effective leaders demonstrate?

• inflexibility, risk taking, innovation

• poor listening skills, vision, creativity

• lack of empathy, innovation, flexibility

• Vision, adaptability, strong communication

What are some barriers to entrepreneurship that individuals may face?

• 1. 1. Lack of access to capital

  2. 2. Insufficient business knowledge

  3. 3. Regulatory challenges (government related)

  4. 4. Lack of a customer base

  5. 5. Cost of a good location

• 1. 1. Abundant resources available

  2. 2. Insufficient business knowledge

  3. 3. Fear of failure

  4. 4. Having a good base of customers

  5. 5. Lack of a business opportunity

• 1. 1. High demand for products

  2. 2. Reputation

  3. 3. Flexibility

  4. 4. Innovation

  5. 5. Fear of failure

• 1. 1. Strong government support

  2. 2. Lack of a business opportunity

  3. 3. Lack of a good customer base

  4. 4. Abundant resources available

  5. 5. High demand for products

How does enterprise contribute to a country's economic development?

• Enterprises reduce competition and limit market access.

• Enterprises contribute by decreasing the workforce and increasing unemployment.

• By creating jobs, increasing productivity, fostering innovation, and generating tax revenues.

• Enterprises primarily focus on maximizing profits without regard for the economy.

What are the main types of business risks and uncertainties?

• Financial risks, operational risks, strategic risks, compliance risks, market risks

• Environmental risks

• Economic risks

• Technological risks