Entrepreneurship, Stakeholders, Money & Risk Management – Lecture Review

These flashcards cover key definitions, roles, functions and examples related to entrepreneurs, stakeholders, money, and risk management drawn from the lecture notes.

What is an entrepreneur?

An individual who sets up an enterprise, takes risks and aims at making a profit.

Name the five main functions of an entrepreneur.

Planning, Organising, Staffing, Leading and Controlling.

What does the planning function of an entrepreneur involve?

Choosing a business idea, setting objectives and anticipating risks.

In entrepreneurship, what is meant by organising?

Bringing resources into the organisation to meet the objectives set.

Define staffing in the context of an enterprise.

Hiring people to work in the enterprise.

What does the leading function entail for an entrepreneur?

Directing and motivating employees toward the enterprise’s objectives.

What is the controlling function of an entrepreneur?

Ensuring tasks are carried out according to expectations and standards.

List six key responsibilities of an entrepreneur.

Keep accounting records; recruit & train workers; promote products; order raw materials/goods; handle customers; look after enterprise finance.

Give two daily activities from Jasveen’s diary that demonstrate entrepreneurial leadership.

Examples: meeting factory supervisors, calling suppliers to order raw materials, discussing marketing strategy, visiting the factory floor.

State any four qualities of a successful leader-entrepreneur.

Innovative, Skilful, Intelligent, Risk-taker, Self-confident, Passionate (any four).

What does it mean for an entrepreneur to be innovative?

To devise new and better ways of doing things within the enterprise.

Define stakeholders.

People, groups or organisations that take interest in the activities and decisions of a business.

What is the primary objective of owners as stakeholders?

To maximise profits and expand the business.

State the role and objective of managers as stakeholders.

Role: organise and run the business. Objective: drive success and earn high salaries.

What do employees aim for as stakeholders?

Secured jobs and fair pay (wages and salaries).

What is the main goal of suppliers?

To receive timely payment for goods supplied to the enterprise.

What do consumers expect from an enterprise?

Safe, reliable and value-for-money products.

How does the government act as a stakeholder?

Regulates and monitors businesses, ensures job creation and compliance with laws.

Define business risk.

Any factor that threatens an enterprise’s ability to achieve its goals.

List the four main types of business risk.

Strategic, Operational, Financial and Compliance risks.

Describe strategic risk.

Chance of business failure due to poor business objectives leading to heavy losses.

What is operational risk?

Risk of failure arising from poor management of daily activities.

Define financial risk.

Risk of failure caused by poorly managed finance.

What is compliance risk?

Risk of failure due to not following laws and regulations.

Outline the five steps of risk management.

1) Identify potential risks 2) Assess impact of loss 3) Develop a mitigation plan 4) Implement the plan 5) Review and evaluate the plan.

After identifying potential risks, what is the next risk-management step?

Assess the impact of the potential loss.

Give an example of a poor location decision and its effect on a business.

Choosing an isolated area can lead to few customers and low sales.

How can computerised records reduce the risk of poor record keeping?

They allow faster, accurate entry and easy retrieval of financial information.

Define money.

Anything generally acceptable as a medium of exchange for goods and services.

What is the ‘double coincidence of wants’ in a barter system?

Each trader must desire exactly what the other party offers for exchange.

List five forms of money that evolved after barter.

Commodity money, Metallic money (gold/silver coins), Paper notes & coins, Payment cards/cheques, Electronic transfers.

State six important characteristics of good money.

Acceptable, Durable, Divisible, Scarce, Uniform and Portable.

Name the four functions of money.

Medium of exchange; Unit of account; Store of value; Standard of deferred payment.

How does money act as a store of value?

It can be saved and used later because it retains its value over time.

Give an example of money serving as a standard of deferred payment.

Buying a laptop on hire-purchase and repaying in monthly instalments.