Enterprise

Question 1

What is an entrepreneur?

Answer 1

A risk taker who sets up a business.

Question 2

What are some characteristics of an entrepreneur?

Answer 2

Creative, leader, persistent, confident.

Question 3

What stakeholders objectives are met when the entrepreneur is successful?

Answer 3

Better pay/ conditions, suppliers will receive more regular orders etc.

Question 4

Why are successful entrepreneurs good for the economy/ government?

Answer 4

Exports help improve UK trade balance and it gives the government more tax.

Question 5

What is the definitions of enterprise?

Answer 5

Another word for business.
Actions of an entrepreneur.

Question 6

What are factors of production?

Answer 6

Inputs used in the production of goods/ services.

Question 7

What are the 4 factors of production?

Answer 7

Land (natural resources), Labour (human resources), Capital (machinery, tools), Enterprise (owner).

Question 8

What happens if there is a shortage of one of the factors of production for a business?

Answer 8

Its price will rise as costs will go up. The business could look for alternative or lower other costs, otherwise stakeholders will be affected.

Question 9

What is adding value?

Answer 9

It is what a business achieves by ensuring price of finished goods exceeds the cost of inputs.

Question 10

How is adding value done?

Answer 10

By manufacturing raw materials into a product or creating brand image.

Question 11

What do constraints on a business mean?

Answer 11

Factors that limits how a business operates.

Question 12

What are some examples of constraints on a business?

Answer 12

Environment, competition, legislation and economy.

Question 13

What are the different functions within a business?

Answer 13

• accounting and finance — responsibility of ensuring costs are under control, making sure funds are available and set budgets.
• operations management and production — responsibility of designing and controlling process of production (stock control, quality control etc).
• marketing and support services — responsibility of advertisements, customer services.
• human resource management — responsibility of wellbeing of employees, trading in and ensuring the business sticks with employment legislation.

It is important for all to work together or stakeholders could be negatively affected.