Section 1 - Business and its environment (Vi Anh, Tung)

What is an entrepreneur?

• an individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the rewards.
• a business employee who takes direct responsibility for turning an idea into a profitable new product or business venture.
• some one who start a business
• a person in the business

Answer explanation

an entrepreneur is someone who has idea for a new business, starts it up and carries most of the risks and get benefits from it

What is not a reason why business fail?

• Lack of cash
• Poor record-keeping
• Unskilled worker
• Poor management skills

Answer explanation

A business doesn't fail from having unskilled worker because they can train them but with the others factor like lack of cash they could leaad to failure.

What is not a economic sectors

• Primary
• Quinary
• Quaternary
• Secondary

Answer explanation

The economic sectors contain primary, secondary, tertiary and quaternay sectors.

True or False: sole trader is a business in which two person provides the permanent finance and, in return, has full control of the business and is able to keep all the profits.

• True
• False

Answer explanation

sole trader is a business in which ONE person provides the permanent finance and, in return, has full control of the business and is able to keep all the profits.

What is one factor of production?

• Price
• Place
• Laboratory
• Land

Answer explanation

Factor of production include: land, labour, enterprise, capital.

A reason why do some business succeed?

• Good understanding of customer needs
• Have a lot of finance
• Lack of opportunity
• Lack of customer based

Answer explanation

Good understanding of customer needs - leads to sales target being achived

What is business plan?

• A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecast.
• A document for the bank
• A plan of the business for the future
• A document for employees

Answer explanation

Business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecast.

What is not an main objective of social enterprise?

• Economic
• Profit maximisation
• Social
• Environmental

Answer explanation

Usually, profit maximisation is not an objective

What is NOT a way to measure business size?

• Selling price of product
• Market capitalisition
• Market Share
• Capital employed

Answer explanation

The selling price doesn't dictate the business size, for example, Uniqlo has lower prices for clothes, but Uniqlo is significantly bigger than brands like Supreme.

Disadvantages of small business

• Offer personal service
• Limited access to finance
• Few opportunities of economies of scale
• Little risk of losing control

Answer explanation

Owners have control over the business, less shareholders, decision is made by one person and could be faster