Workbook 6: Entrepreneurs & Leaders

• A business Is an organisation that exists to provide goods and services on a commercial basis to customers
• An entrepreneur is a person who organises, operates, and assumes the risk for a business venture. A person who takes the risk in starting a new business
• Enterprise is the creation of a business to meet the needs and wants of customers.
• A start-up is a new business enterprise formed by one or more entrepreneurs
• Intrapreneurship Involves people within a business crating /discovering new business opportunities, which leads to the creation of new parts of the business or even businesses
• Risk is the probability that things will not go as well as planned
• A social enterprise is a business which trades in goods/services for a social purpose
• Business objectives are targets which the business adopts in order to achieve its primary aims
• Business aims are a long term plan/goal, from which business objectives are derived
• Business missions are a qualitative statement of the business's aims and purpose
• Corporate objectives are specific goals that provides the focus for setting more detailed objectives for the main functional activities of the business
• SMART is an acronym which helps business to set effective objectives. S - specific, M - measurable, A - achievable, R - relevant, T - time bound
• S in SMART stands for specific, The objective should state exactly what is to be achieved
• M in SMART stands for measurable, The objective should be capable of measurement - so that it is possible to determine whether (or how far) it has been achieved
• A in SMART stands for achievable, The objective should be realistic given the circumstances in which it is set and the resources available to the business
• R in SMART stands for relevant, The objective should be relevant to the people responsible for achieving them
• T in SMART stands for time bound, The objective should be set with a time-frame in mind. These deadlines also need to be realistic
• An unincorporated company is a business with no separate legal identity - the owner is the business
• An incorporated business is a business with its own legal entity - separate from the owner
• Unlimited liability is when the owner/owners is/are personally liable for the business debts
• Limited liability is when the business owner/owners are only responsible for business debts, up to the value of their financial investment in the business
• A sole trader is an individual owning a business on his/her own and they work for themselves
• A partnership is a business shared and owned by 2 or more people
• A public limited company (plc) is a business which is legally allowed to sell its shares to the public
• A private limited company (ltd) is a company which has a separate identity from the people who own it and their shares are not available to the public
• A franchise is a grant/license granted by the franchisor to a franchisee to allow it to trade using the brand/business format
• Public sector's are organisations/companies owned by the government, they operate with money raised from taxes.
• Private sector's are organisations/companies owned by individuals and shareholders
• Opportunity cost is the price of the next best alternative forgone
• A trade-off arises when having more than one thing (good A) potentially results in having less of another (good B)