Entrepreneurship and Leadership Concepts
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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

    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</p> Signup and view all the answers

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

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

    A partnership requires a formal registration as a business.

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

    A sole trader can have multiple owners.

    <p>False</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.</p> Signup and view all the answers

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

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

    More shares owned by a shareholder increases their voting power.

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

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

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

    Semi-manageable variables can be influenced by marketing managers.

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

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

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

    Compliance risk only pertains to voluntary regulations.

    <p>False</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

    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).

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    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.

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