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Questions and Answers
Which of the following is NOT a quality of an entrepreneur?
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 _____ .
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Match the types of management levels with their corresponding responsibilities:
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What does environmental scanning help identify?
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Laissez-faire leadership involves a strict adherence to rules and immediate oversight.
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What is one responsibility of the controlling task in management?
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What is one of the advantages of being a sole trader?
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A partnership requires a formal registration as a business.
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What factor can potentially motivate partners in a partnership?
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In a close corporation, a fixed tax rate of __________ is applied to profits.
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Match the following forms of ownership with their characteristics:
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Which of the following is NOT an advantage of a partnership?
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A sole trader can have multiple owners.
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What can happen to personal items of a sole trader in case of business debts?
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What distinguishes a public company from a private company in terms of shares?
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Members' personal items are at risk if the business lands in financial difficulty.
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What is the primary purpose of market research?
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The _____ allows shareholders to vote for directors of a company during an AGM.
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Match the following marketing activities with their purposes:
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Which is NOT an aim of marketing?
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More shares owned by a shareholder increases their voting power.
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List two manageable variables in a marketing system.
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Which of the following is NOT one of the rights under the Consumer Protection Act?
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All consumers are treated the same under the Consumer Protection Act.
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What does the Companies Act state about the incorporation of non-profit companies?
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The Consumer Protection Act promotes positive ______ for consumers.
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Match the following company types with their descriptions:
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What is one of the main objectives of risk management?
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Semi-manageable variables can be influenced by marketing managers.
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Define consumerism in the context of business.
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Which of the following is NOT a type of risk mentioned?
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Operational risk refers to unexpected failures during day-to-day business operations.
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What is the primary focus of risk estimation?
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The process of assessing the biggest ranking risks and developing plans to prevent and solve them is called ______.
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Match the following types of costs to their definitions:
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What does the risk profile include?
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Compliance risk only pertains to voluntary regulations.
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What is the goal of risk monitoring?
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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.
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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.
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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.
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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.
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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.