Entrepreneurship Concepts and Challenges

The video discusses entrepreneurship, including the definition, characteristics, benefits, and limitations of being an entrepreneur. It covers the essentials of a business plan, its purpose, and content. The video also explains how governments support startups and methods to compare business size. It explores business growth, types of integration, and challenges faced during expansion. Finally, it addresses reasons for business failure and why some businesses choose to remain small.

What is a key characteristic of a successful entrepreneur?

• Dependence on others

• Laziness

• Risk aversion

• Optimism

Which of the following is a limitation faced by entrepreneurs?

• Risk of business failure

• Unlimited access to capital

• No opportunity cost

• Guaranteed business success

What is the primary purpose of a business plan?

• To increase employee salaries

• To gain finance and reduce business failure risk

• To eliminate competition

• To ensure immediate business success

Which of the following is NOT typically included in a business plan?

• Cash flow details

• Location of operation

• Description of the product

• Employee personal details

How do governments support business startups?

• By increasing taxes

• By restricting market entry

• By eliminating competition

• By providing premises and financial help

What is a limitation of comparing business size by the number of employees?

• It is the most accurate method

• It does not account for capital-intensive businesses

• It ignores the value of output

• It considers only the value of sales

Why might a business choose to remain small?

• To avoid market competition

• Due to the owner's personal objectives

• To increase tax rates

• To expand rapidly

What is an example of horizontal integration?

• A food company taking over a restaurant

• A clothing company taking over another clothing company

• A clothing company taking over a food company

• A tech company merging with a bank

What is a potential problem of business growth?

• Expansion costs leading to financial strain

• Easier management

• Decreased market share

• Improved communication

What is a benefit of business growth?

• Higher average costs

• Lower profit for the owner

• Larger market share

• Reduced status for managers