Entrepreneurship and Leadership Concepts
40 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT a quality of an entrepreneur?

  • Creative
  • Risk tolerance
  • Good leadership skills
  • Complacency (correct)

An intrapreneur operates independently and is solely responsible for the financial risks of a business.

False (B)

What is the main goal of a social entrepreneur?

To solve social issues.

The main tasks of management include leading, controlling, organizing, and _____ .

<p>planning</p> Signup and view all the answers

Match the types of management levels with their corresponding responsibilities:

<p>Top = Strategic, long term, e.g. CEO Middle = Tactical, decisions from the top are executed, e.g. Branch Manager Lower = Operational, short term, day-to-day tasks, e.g. Supervisor</p> Signup and view all the answers

What does environmental scanning help identify?

<p>Opportunities (B)</p> Signup and view all the answers

Laissez-faire leadership involves a strict adherence to rules and immediate oversight.

<p>False (B)</p> Signup and view all the answers

What is one responsibility of the controlling task in management?

<p>To ensure objectives are achieved.</p> Signup and view all the answers

What is one of the advantages of being a sole trader?

<p>Quick decisions (D)</p> Signup and view all the answers

A partnership requires a formal registration as a business.

<p>False (B)</p> Signup and view all the answers

What factor can potentially motivate partners in a partnership?

<p>Unlimited liability</p> Signup and view all the answers

In a close corporation, a fixed tax rate of __________ is applied to profits.

<p>28%</p> Signup and view all the answers

Match the following forms of ownership with their characteristics:

<p>Sole Trader = One owner with unlimited liability Partnership = 2-20 owners sharing management Close Corporation = 2-10 members with fixed tax Company = Shareholders involved in ownership</p> Signup and view all the answers

Which of the following is NOT an advantage of a partnership?

<p>Requires unanimous agreement for decisions (C)</p> Signup and view all the answers

A sole trader can have multiple owners.

<p>False (B)</p> Signup and view all the answers

What can happen to personal items of a sole trader in case of business debts?

<p>They can be lost due to unlimited liability.</p> Signup and view all the answers

What distinguishes a public company from a private company in terms of shares?

<p>Public companies sell shares easily, while private companies find it time-consuming to sell shares. (B)</p> Signup and view all the answers

Members' personal items are at risk if the business lands in financial difficulty.

<p>False (B)</p> Signup and view all the answers

What is the primary purpose of market research?

<p>To identify the target market and assess the size of the market.</p> Signup and view all the answers

The _____ allows shareholders to vote for directors of a company during an AGM.

<p>shareholders</p> Signup and view all the answers

Match the following marketing activities with their purposes:

<p>Finance = Managing funds for marketing campaigns Transport = Moving products to distribution points Market research = Identifying target market and consumer behavior Insurance = Covering risks associated with marketing activities</p> Signup and view all the answers

Which is NOT an aim of marketing?

<p>Decreasing market share (C)</p> Signup and view all the answers

More shares owned by a shareholder increases their voting power.

<p>True (A)</p> Signup and view all the answers

List two manageable variables in a marketing system.

<p>Marketing mix and marketing objectives.</p> Signup and view all the answers

Which of the following is NOT one of the rights under the Consumer Protection Act?

<p>Right to unlimited ownership (C)</p> Signup and view all the answers

All consumers are treated the same under the Consumer Protection Act.

<p>True (A)</p> Signup and view all the answers

What does the Companies Act state about the incorporation of non-profit companies?

<p>Non-profit companies must be registered with an objective related to cultural or social activities and need at least three people to incorporate.</p> Signup and view all the answers

The Consumer Protection Act promotes positive ______ for consumers.

<p>consumerism</p> Signup and view all the answers

Match the following company types with their descriptions:

<p>Non-profit companies (NPC) = Cannot merge with a profitable company State-owned companies (SOC) = Owned by government Private companies (Pty Ltd) = Restrictions on transferability of shares Public companies (Ltd) = Requires only one shareholder</p> Signup and view all the answers

What is one of the main objectives of risk management?

<p>To identify and control threats (D)</p> Signup and view all the answers

Semi-manageable variables can be influenced by marketing managers.

<p>True (A)</p> Signup and view all the answers

Define consumerism in the context of business.

<p>Consumerism is the ability of consumers to influence a business's actions by advocating for ethical practices.</p> Signup and view all the answers

Which of the following is NOT a type of risk mentioned?

<p>Emotional Risk (C)</p> Signup and view all the answers

Operational risk refers to unexpected failures during day-to-day business operations.

<p>True (A)</p> Signup and view all the answers

What is the primary focus of risk estimation?

<p>To assess the probability of certain risks occurring and their impact on the business.</p> Signup and view all the answers

The process of assessing the biggest ranking risks and developing plans to prevent and solve them is called ______.

<p>risk mitigation</p> Signup and view all the answers

Match the following types of costs to their definitions:

<p>Fixed costs = Costs that must be paid regardless of revenue Variable costs = Costs that vary with production levels Controllable costs = Costs influenced by business decisions</p> Signup and view all the answers

What does the risk profile include?

<p>A list of what can go wrong with a strategy (D)</p> Signup and view all the answers

Compliance risk only pertains to voluntary regulations.

<p>False (B)</p> Signup and view all the answers

What is the goal of risk monitoring?

<p>To follow up and review the risk process, tracking new and existing risks.</p> Signup and view all the answers

Flashcards

Entrepreneur

Someone who identifies a market gap, takes risks, and starts their own business for profit.

Intrapreneur

Someone who uses creative skills to grow a business within a company.

Environmental Scanning

Identifying market opportunities and threats, competitor analysis, and studying resources

Social Entrepreneur

An entrepreneur focused on solving social problems, not profit maximization.

Signup and view all the flashcards

Management Tasks

The core functions of management: planning, organizing, leading, and controlling.

Signup and view all the flashcards

Controlling

Monitoring and evaluating to ensure objectives are met and resources are utilized efficiently.

Signup and view all the flashcards

Levels of Management

Different management roles with varying responsibilities: top, middle, and lower.

Signup and view all the flashcards

Planning

Creating a roadmap for actions and setting goals to achieve specific objectives.

Signup and view all the flashcards

Sole Trader

A business owned and run by one person.

Signup and view all the flashcards

Unlimited Liability

The owner is personally responsible for all business debts.

Signup and view all the flashcards

Partnership

A business owned and run by two or more people.

Signup and view all the flashcards

Partnership Formation

Creating a partnership involves a formal agreement specifying responsibilities and profit sharing.

Signup and view all the flashcards

Supervisor Motivation Factors

Factors like job security, money, good working environment, and reasonable instructions can motivate a supervisor.

Signup and view all the flashcards

Close Corporation (CC)

A business with a limited number of members, offering limited liability for owners, unlike sole traders or partnerships.

Signup and view all the flashcards

Formation Procedure (Sole Trading)

Starting a sole trading business is straightforward, requiring minimal legal steps.

Signup and view all the flashcards

Partnership Advantages

More capital, shared management responsibilities, and potentially reduced competition compared to a sole trader.

Signup and view all the flashcards

Limited Liability in a CC

Owners of a Cooperative Company (CC) only risk their investment; personal assets are protected.

Signup and view all the flashcards

Continuity of a CC

A Cooperative Company (CC) continues operating even if members change; only ends when members decide to discontinue the business.

Signup and view all the flashcards

Public Company Share Sales

Shares are easily sold to the public in public companies.

Signup and view all the flashcards

Private Company Share Sales

Selling shares in a private company is usually more involved and requires invitees.

Signup and view all the flashcards

Marketing's Goal

Satisfying customer needs and wants to make profit by delivering the right product/service at the right place, price, and time.

Signup and view all the flashcards

Marketing Research Purpose

Understanding the market, identifying the target group, and analyzing sales potential of a product or service.

Signup and view all the flashcards

Manageable Marketing Variables

Marketing mix and objectives directly controlled by the marketing manager.

Signup and view all the flashcards

Companies Management Authority

Company board of directors, voted in at the Annual General Meeting (AGM), handles management decisions and shareholders vote for them; more shares lead to more voting power.

Signup and view all the flashcards

Semi-manageable variables

Marketing-influenced factors like decisions from finance or production.

Signup and view all the flashcards

Non-manageable variables

External factors like competition or politics.

Signup and view all the flashcards

Consumer Protection Act (CPA)

South African law to protect consumers and promote fair markets.

Signup and view all the flashcards

Consumerism

Consumer pressure on businesses to act ethically.

Signup and view all the flashcards

Non-profit company (NPC)

Company registered for cultural, social, or group activities.

Signup and view all the flashcards

Risk Management

Identifying, assessing and controlling threats.

Signup and view all the flashcards

Fiduciary duty

Duty of care and skill; acting in company's best interest.

Signup and view all the flashcards

Memorandum of Incorporation (MOI)

Document detailing company governance, rights, responsibilities of shareholders and directors.

Signup and view all the flashcards

Risk Identification

Identifying potential risks that could negatively impact a business.

Signup and view all the flashcards

Risk Analysis

Understanding the likelihood and impact of a risk.

Signup and view all the flashcards

Risk Assessment

Evaluating a risk's likelihood and severity to determine acceptability.

Signup and view all the flashcards

Risk Mitigation

Developing plans to prevent or reduce identified risks.

Signup and view all the flashcards

Fixed Cost

Costs that stay the same regardless of production levels, e.g., rent, insurance.

Signup and view all the flashcards

Variable Cost

Costs that change based on production levels, e.g., raw materials.

Signup and view all the flashcards

Strategic Risk

A risk that a business's strategy becomes less effective and struggles to meet its goals.

Signup and view all the flashcards

Operational Risk

Risk of unexpected failures in a business's daily operations.

Signup and view all the flashcards

Study Notes

Entrepreneur as Leader

  • Definition: Identifying a gap in the market, taking risks to create an independent business for profit.
  • Intrapreneur: Uses creativity to grow a company's business, often with a more secure monthly salary.
  • Entrepreneur Qualities:
    • Risk tolerance
    • Responsibility
    • Creativity
    • Determination
    • Strategic thinking
    • Good leadership skills
    • Passionate

Types of Entrepreneurs

  • Social: Focuses on solving social issues, not primarily profit.
  • Techno: Uses technology to address problems (e.g., Uber).
  • Eco: Seeks profit while minimizing environmental harm.
  • Tender: Acquires contracts from government or private businesses for specific services (e.g., building a road).

Environmental Scanning

  • Identifies threats and opportunities: Analyzing market gaps and competitor insights.
  • Market knowledge: Understanding competitors and industry trends.
  • Strategy creation: Developing short- and long-term strategies.

Management Tasks

  • Leading: Guiding and motivating people.
  • Controlling: Ensuring objectives are achieved and departments function smoothly.
  • Organizing: Structuring tasks and resources.
  • Planning: Setting targets and creating strategies.

Levels of Management

  • Top: Strategic, long-term decisions (e.g., CEO).
  • Middle: Tactical, decisions from top are executed (e.g., Branch Manager).
  • Lower: Operational, day-to-day tasks (e.g., Supervisor).

Factors for Motivation

  • Job security
  • Money
  • Human relations
  • Reasonable instructions

Forms of Ownership

  • Sole Trader: One owner, quick decisions, lower risk, all profits are owner's. Disadvantages include limited capital, sole responsibility, and no continuity if owner is unavailable. May not be registered as a business, and income tax is based on personal capacity.
  • Partnership: Two or more owners, pooling capital, shared management; potential conflicts if partners disagree, unlimited liability if one partner makes a mistake impacting the other partners.
  • Close Corporation (CC): Multiple managers, divided and conquer, increased productivity. Disadvantages include all or majority must agree, which can be slow, and potential conflicts during decision-making.
  • Company (Public/Private): Registered as a separate legal entity, limited liability for owners. Public companies allow for numerous shareholders, whereas private companies limit shareholder numbers.

Marketing

  • What it is: Identifying, anticipating, and meeting customer needs to gain profit. Delivered at the right place and price, at the right time.
  • Aims:
    • Satisfying consumer needs and wants
    • Meeting consumer expectations
    • Identifying the target market
  • Marketing Activities: Finance, transport, storage, selling, grading, standardisation, collection and distribution, market research.
  • Purpose of Market Research:
    • Helps identify the target market
    • Investigate market size
    • Use SWOT to determine product potential
    • Show how much consumers want to pay
    • Indicate place of distribution.
  • Marketing Research Methods: Telephonic calls, questionnaires, online surveys, personal interviews, social media promotions.
  • Marketing Manager Roles: Responsible for marketing activities to achieve enterprise goals.

CPA (Consumer Protection Act 68 of 2008)

  • Aim: Fair market place for consumers.
  • Rights:
    • Right to choose
    • Right to responsible marketing (no negative or unfair marketing)
    • Equality among all consumers
    • Right to hold suppliers accountable
    • Right to fair value, good quality, and safety

Risk Management Concepts

  • Consumerism: Consumer's ability to influence business practices through ethical pressure.
  • Risk Management Function: Identifying, assessing, and controlling potential risks (e.g., threats, damage) for better business performance.
  • Types of Risks:
    • Strategic
    • Compliance
    • Operational
    • Financial
    • Reputational

Risk Management Process

  • Risk Identification: Identifying potential risks affecting business.
  • Risk Analysis: Assessing the potential impact.
  • Risk Assessment and Evaluation: Determining if the risk is likely and acceptable to take on.
  • Risk Mitigation: Developing plans to prevent risks.
  • Risk Monitoring: Tracking the risk process, following up and reviewing risks.

Cost, Revenue, and Break-Even Analysis

  • Fixed Costs: Costs that stay the same regardless of production (e.g., rent, insurance)
  • Variable Costs: Costs that change based on production volume (e.g., raw materials)
  • Controllable Costs: Costs business can influence decision-making on (e.g., salaries).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Business Notes PDF

Description

Explore the essential qualities and types of entrepreneurs, including social, technological, and eco-entrepreneurs. Understand the concepts of intrapreneurship and environmental scanning to identify market gaps and strategic opportunities. This quiz challenges your knowledge on effective leadership in entrepreneurship.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser