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• An entrepreneur is a person who takes on the risk of starting their own business venture
• The entrepreneur takes all the profits or losses made by the business
• Characteristics of an entrepreneur:

  • Innovative
  • Goal oriented
  • Flexible
  • Creative
  • Persistent
• Roles of an entrepreneur:

  • Conceptualizing: creating business ideas that meet the wants and needs of the potential market
  • Planning: setting business goals and objectives and how they will be achieved
  • Accessing funds: organizing the funds needed to start up and run a successful business
• 4 reasons a person may want to start a business:

  • For financial independence
  • For self-fulfillment
  • To increase income
  • For increased control over time
  • For self-actualization
• How an entrepreneur could contribute to the economic development of a country:

  1. Collaborating: bringing people together to work towards achieving set goals and objectives, increasing productivity and GDP

  2. Providing goods and services to satisfy citizens, leading to happier workers and increased productivity
• Market:

  • Any situation where buyers and sellers interact, can be face to face or virtual
  • Example: stock market
• Benefits of packaging a product:

  • Protect the product from damage
  • Provide details about the product
• Forms of advertising:

  • Informative advertising: provides facts about a product or service
  • Persuasive advertising: aims to convince the customer to buy the good or service
  • Competitive advertising: shows customers why a business' goods or services are superior to competitors
• Domestic production:

  • Involves goods produced not solely for individuals and families but to meet the local market's needs
  • Trading occurs
• Export:

  • Occurs when there is a surplus in production for the local market's economy and the excess is exported
• Characteristics of an entrepreneur:

  • Innovative
  • Goal oriented
  • Flexible
  • Creative
  • Persistent
• An entrepreneur takes on the risk of starting their own business venture
• The entrepreneur takes all the profits or losses made by the business
• Roles of an entrepreneur:

  • Conceptualizing: creating business ideas that meet the wants and needs of the potential market
  • Planning: setting business goals and objectives and how they will be achieved
  • Accessing funds: organizing the funds needed to start up and run a successful business
• Reasons a person may want to start a business:

  • For financial independence
  • For self-fulfillment
  • To increase income
  • For increased control over time
  • For self-actualization
• How an entrepreneur could contribute to the economic development of a country:

  1. Collaborating: bringing people together to work towards achieving set goals and objectives, increasing productivity and GDP

  2. Providing goods and services to satisfy citizens, leading to happier workers and increased productivity
• Market:

  • Any situation where buyers and sellers interact, can be face to face or virtual
  • Example: stock market
• Benefits of packaging a product:

  1. Protect the product from damage

  2. Provide details about the product
• Forms of advertising:

  • Informative advertising: provides facts about a product or service
  • Persuasive advertising: aims to convince the customer to buy the good or service
  • Competitive advertising: shows customers why a business' goods or services are superior to competitors
• Domestic production:

  • Involves goods produced not solely for individuals and families but to meet the local market's needs
  • Trading occurs
• Export:

  • Occurs when there is a surplus in production for the local market's economy and the excess is exported
• Transmitting culture in families involves transferring cultural elements like attitudes, values, beliefs, and behavioral scripts to individuals and groups
• Roles of the family include providing finances for monetary needs, nurturing, caregiving, supporting and protecting family members, and carrying out household chores
• The family of Mr. and Mrs. Hines has experienced the beginning stage and the expanding stage of the family life cycle
• Community resources that could assist Mr. Heinz's family include schools, clinics, parks, and churches
• Decision making in management involves a series of steps to solve problems, needs, or achieve goals
• The first four steps in a decision-making process are:

  1. Identify the problem

  2. Identify the goal to be achieved

  3. Identify the resources needed

  4. Identify and consider alternative solutions
• Underlying reasons for conflicts in the Johnson family may include favoritism, lack of privacy, chore issues, sibling rivalry, financial matters, child-rearing, discipline, and involvement of parents from previous relationships
• Legal means of acquiring money include remittances, inheritance, work, subsistence income, rental income, and dividends
• Types of organizational structures

  • Formal
  • Informal
• Some organization structures are difficult to understand and are usually represented on charts called organizational charts
• Organizational structure


  The distribution of tasks and responsibilities within the organization to achieve its goals
• Formal structure


  • Concerned with the official lines of communication followed by employees in carrying out management decisions
• Types of formal organizational structure

  • Line
  • Line and staff
  • Functional
  • Committee
• Responsibility

  The obligation to perform a task properly
• Authority


  The right or power to command
• Line and Staff structure


  • Similar to Line structure with an added dimension of specialized staff activities supporting the line activities
• Informal Organization


  • Groups that influence an organization but are not directed by business interests, not represented on organizational charts
• Committee Organization structure

  • Uses specialization in management to group specialists in committees to advise top executives and assist in policy development