Introduction to Enterprise (Cambridge IGCSE)

Flashcards covering enterprise concepts, stakeholder roles, process stages, and types of business organization from the Cambridge IGCSE Enterprise notes.

What is Enterprise as defined in the notes?

An organization or business managed by individuals who take initiative, make decisions, and take calculated risks; also refers to the qualities that make people want to start a business.

What is a Business Enterprise?

Aims to make a profit, which is reinvested or distributed to owners/shareholders.

What is a Social Enterprise?

Aims to improve society and is not-for-profit; profits are reinvested in the community.

Who is an Entrepreneur?

A self-driven and innovative individual who starts a new business; multi-skilled, self-confident, initiator, leader, and results-driven.

What is an Enterprise Capability in this context?

A set of skills including risk-taking, decision-making, innovation, and a positive attitude that enable successful enterprise.

Explain 'Risk-taking' as an Enterprise Capability.

Taking calculated risks with the expectation of high returns.

Explain 'Decision-making' as an Enterprise Capability.

Using available resources wisely.

Explain 'Innovation' as an Enterprise Capability.

Spotting opportunities for enterprise in existing products or services through rebranding or targeting different markets.

Explain 'Positive attitude' as an Enterprise Capability.

Driving entrepreneurs to take risks and overcome challenges.

What is a Stakeholder?

An individual, group, or organization with an interest in the activities of a business.

Who are Internal Stakeholders?

Directly involved in the running of the company (e.g., employees, owners/shareholders).

Who are External Stakeholders?

Outside parties affected by the business (e.g., lenders, local community, suppliers, customers/consumers, government, competition).

What are Employees' Stakeholder Interests?

Fair wages, job security, good working conditions.

What are Owners/Shareholders' Stakeholder Interests?

Business growth and profits.

What are Customers'/Consumers' Stakeholder Interests?

Good quality product/service at a fair price.

What are Government's Stakeholder Interests?

Taxes, employment generation, following laws.

What are the Local Community's Stakeholder Interests?

Minimal negative impact (traffic, pollution), infrastructural developments, and jobs.

What are Suppliers' Stakeholder Interests?

Timely payments.

What are Lenders' Stakeholder Interests?

Repayment on time.

What are Competition's Stakeholder Interests?

Gaining market share through effective marketing and pricing.

What does it mean to be Enterprising at home and at school?

Taking initiative, responsibility, being organized and creative.

Define 'Analyse' (Key Term).

Examine in detail to show meaning, identify elements and the relationship between them.

Define 'Evaluate' (Key Term).

Judge or calculate the quality, importance, amount, or value of something.

Define 'Identify' (Key Term).

Name/select/recognise.

Define 'Explain' (Key Term).

Set out purposes or reasons, show relationships, and support with relevant evidence.

What is the 'Enterprise Process'?

The stages involved in starting and running an enterprise.

Which stage of the Enterprise Process involves identifying the problem, need, or want with discussion, risk assessment, and market research?

Identifying the problem, need or want.

Which stage uses mind maps to explore links between ideas?

Exploring creative solutions.

Which stage involves planning with costs, budgeting, and breaking down goals into tasks?

Action planning.

Which stage involves implementing the plan, staying lawful and safe, and referring to milestones?

Implementing the plan.

Which stage involves monitoring progress and taking corrective action?

Monitoring Progress.

Which stage involves evaluating outcomes against criteria and drawing lessons?

Evaluation of successes and failures.

What is a Sole Trader?

Owned and run by one person; unincorporated with unlimited liability.

What are the advantages of a Sole Trader?

Cheap, quick, simple to start; owner keeps all profits; full control.

What are the disadvantages of a Sole Trader?

Unlimited liability; difficult to raise finance.

What is a Partnership?

Owned by two or more people; unincorporated with unlimited liability.

What are the advantages of a Partnership?

Cheap, quick, simple to start; partners share profits and workload.

What are the disadvantages of a Partnership?

Unlimited liability; difficult to raise finance; disagreements between partners.

What is a Limited Company?

Incorporated; separate legal entity from owners; limited liability for shareholders.

What is a Private Limited Company?

Shares held by friends and family.

What is a Public Limited Company (PLC)?

Shares offered to the public; limited liability; easier to raise finance; continuity.

What are the disadvantages of a PLC?

Complex to set up; loss of control as shares are sold; public accounts.

What is a Co-operative?

Owned and managed by people who use its services or work there.

What is a Consumer Co-operative?

Owned by consumers.

What is a Producer Co-operative?

Owned by producers.

What is a Worker Co-operative?

Run by employees.

What are the advantages of Co-operatives?

Democratic; members work together; limited liability; tax relief; continuity.

What are the disadvantages of Co-operatives?

Difficult to raise finance; public accounts; members may lack skills.

What is a Franchise?

A company (franchisee) buys the right to use an existing company's (franchisor) brand name and products/services.

What are the advantages of Franchises?

Greater chance of success; support from franchisor; national advertising; easier to get loans.

What are the disadvantages of Franchises?

License fees; percentage of revenue to franchisor; high initial costs; limited control.

What is a Social Enterprise?

Businesses with social objectives and ethical values aimed at benefitting the community.

What are Not-for-profit Enterprises?

Produce goods or provide services in a socially responsible way.

What are Charities?

Raise money by fundraising and donations.

What are the advantages of Charities?

Committed employees; job satisfaction; positive change to communities.

What are the disadvantages of Charities?

Less competitive due to limited capital.

What is Income in a business context?

All the money that comes in to an enterprise.