Chapter 1- Enterprise

Question 0

What is an entrepreneur?

Answer 0

These are individuals who have an idea that they develop by setting up a new business and encouraging it to grow.

Question 1

What is an enterprise?

Answer 1

The process by which new businesses are formed and new products and services are created and brought to the market.

Question 2

Reasons why a business may fail?

Answer 2

• Lack of finance
• Poor infrastructure
• Skills Shortages
• Complexity of regulations

Question 3

What is oppurtunity cost?

Answer 3

Oppurtunity cost is the real cost of taking a particular action or the next best alternative

Question 4

Why people may choose to be an entrepreneur?

Answer 4

• Long-term low interest rates that make it cheaper to borrow money to start a business.
• A change in the political climate
• Increasing affluence

Question 5

Why do entrepreneurs engage in entrepreneurial activity?

Answer 5

• Some to gain more freedom at work
• Most to make money
• Some to sustain a going concern (family business)
• To provide employment for the local community

Question 6

How do the government support an enterprise?

Answer 6

• Reducing business taxes and trying to establish and maintain a competitive business tax system
• Reducing the regulatory burden
• Reducing barriers to raising finance