QA3 Preparation

• What is the etymology of the word entrepreneur?

  It comes from the French word "Entreprendre"
• What is entrepreneurship?

  It is the process of creating and managing a business
• Who is an entrepreneur?

  An individual who creates and manages a business
• What is a characteristic of entrepreneurs?

  They assume risks with no assurance of survival
• What term is used for new businesses?

  Startups
• What is an employee?

  A person who works for a company for wages
• How does a businessman differ from an entrepreneur?

  Businessmen operate unoriginal business ideas
• What is the risk level for businessmen?

  Very low risk
• What are the two types of entrepreneurs?

  Mega entrepreneurs and micro entrepreneurs
• What do mega entrepreneurs create?

  Substantial income from innovations
• What are characteristics of micro entrepreneurs?

  Limited profits and inadequate skills
• What is the entrepreneurial process?

  • Starting a new business venture
  • Identifying opportunities
  • Developing a business plan
  • Managing the enterprise
• What is the first step in starting a business?

  Discovery
• How do mega entrepreneurs draw ideas?

  From current inventions and technological developments
• Where do micro entrepreneurs get their business ideas?

  From limitations of existing products
• What does the development of concept involve?

  Giving more details and suggesting preparation
• What is involved in organizing resources?

  Identifying sourcing and financing needed resources
• What characterizes mega entrepreneurs' resource sourcing?

  They source highly educated and creative employees
• How do micro entrepreneurs source their funds?

  From family savings and loans
• What does implementation involve?

  Carrying out the business plan
• What is included in the reaping the returns step?

  Strategies related to business expansion
• What are the five business pillars?

  Operations, Marketing, Sales, Finance, People
• What does operations involve?

  Managing the inner workings of a business
• What is the role of marketing?

  Promoting the business and brand message
• What is the purpose of sales?

  Converting potential clients into actual sales
• What does finance involve?

  Managing money through planning and budgeting
• Why are people important in business?

  They hold all other pillars together
• What is a product?

  A tangible object for consumption or possession
• What is barter?

  The exchange of goods without cash
• What are the conditions for exchange according to Kotler and Keller?

  Two parties, possession, communication, decision, trust
• What is the market?

  The place where products/services are exchanged for money
• What is competition in business?

  Companies providing similar or substitute products/services
• What characterizes perfect competition?

  Homogenous products with no preferences
• What is a monopoly?

  One seller controls the entire market
• What is oligarchy in business?

  Few firms dominate the market
• What does the environment in business include?

  Factors influencing business activities
• What is a feasibility study?

  Evaluation predicting success or failure of a project
• What is the importance of information in business?

  Knowing what the market needs
• What does distribution involve in business?

  Distributing information to relevant stakeholders
• What is viability in business?

  Ability to survive and sustain profits long-term