Entrepreneurship and Leadership Traits Quiz

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Questions and Answers

What is essential to determine before launching a product or service?

Marketing strategy

Product cost

Window of opportunity (correct)

Sales target

Which of the following best describes a niche market?

A broad target customer base

A market with no direct competition

A segment with diverse interests

A smaller segment with similar interests (correct)

What must a niche market be large enough to do?

Avoid market segmentation

Increase overall market size

Support a proposed business (correct)

Compete directly with industry leaders

What is a key benefit of conducting a feasibility study?

To establish market size Signup and view all the answers

What does determining the break-even point help identify?

When a business becomes profitable Signup and view all the answers

Which factor is NOT associated with a viable business idea?

Small target market Signup and view all the answers

What is one of the first steps in determining the viability of a business idea?

Understanding customer needs Signup and view all the answers

What is one key attribute of an entrepreneurial leader?

Supportive Signup and view all the answers

In a feasibility study, what does the SWOT analysis assess?

Strengths, weaknesses, opportunities, threats Signup and view all the answers

Which trait is essential for entrepreneurs when facing challenges?

Perseverance Signup and view all the answers

How does entrepreneurship contribute to national economic growth?

By creating social change Signup and view all the answers

What trait involves the ability to identify and act on opportunities?

Opportunity explorer Signup and view all the answers

Which of the following is NOT a part of the entrepreneurial process?

Stagnation Signup and view all the answers

What is one important reason why governments promote entrepreneurship?

To stimulate economic opportunities Signup and view all the answers

Which outcome is associated with increased levels of entrepreneurial activity?

Increased market share Signup and view all the answers

Which statement best reflects the relationship between creativity and value creation in entrepreneurship?

Creativity is a crucial aspect of creating value. Signup and view all the answers

Why is growth important for a business?

It can drive business performance and profit. Signup and view all the answers

What type of costs are considered direct costs?

Material and labor used specifically for a project. Signup and view all the answers

Which of the following is NOT a type of manufacturing cost?

Administrative expenses Signup and view all the answers

Which of the following best describes indirect costs?

Costs that cannot be easily identified with a particular project. Signup and view all the answers

What is a benefit of business growth?

It allows for the expansion of products or services. Signup and view all the answers

How does cost accounting assist a business?

By determining the price of a product. Signup and view all the answers

Which of the following is NOT classified under direct costs?

General administrative salaries. Signup and view all the answers

What effect does market penetration generally have on a business?

It increases sales through wider market access. Signup and view all the answers

What are indirect costs?

Costs incurred by support services like utilities and salaries Signup and view all the answers

Which of the following is an example of fixed costs?

Lease payments for factory space Signup and view all the answers

Which cost type increases directly with changes in activity level?

Variable costs Signup and view all the answers

What are stepped costs characterized by?

They remain the same within a certain range of activity Signup and view all the answers

What does the formula TC = FC + (VC x Units) represent?

Total cost calculation Signup and view all the answers

What defines a breakeven point?

The point where total cost equals total revenue Signup and view all the answers

Which of the following exemplifies semi-variable costs?

Electricity costs dependent on usage Signup and view all the answers

If a business needs to produce 5000 cabbages to break even with fixed costs of P10000 and a variable cost per cabbage of P3, what is the selling price per cabbage?

P5 Signup and view all the answers

Which component of a mission statement refers to the firm's competitive advantage?

Self concept Signup and view all the answers

What is one of the main purposes of organizational structure?

To minimize uncertainties Signup and view all the answers

Which type of organizational structure groups similar tasks by business functions?

Functional Structure Signup and view all the answers

What is a disadvantage of the functional structure?

Leads to short term, narrow thinking Signup and view all the answers

Which of the following is NOT a component of a mission statement?

Reputation Signup and view all the answers

What aspect does a mission statement project to stakeholders?

Sense of intent Signup and view all the answers

Which of the following best describes a disadvantage of the functional structure?

Impedes delegation of authority Signup and view all the answers

For what reason should evaluation of mission statements include personal judgment?

There is no one best mission statement Signup and view all the answers

Study Notes

Entrepreneurial Leaders

Communication skills, vision, and self-belief are key traits
Entrepreneurial leaders create an atmosphere for growth, promote honesty, and share success
They encourage perseverance and learning for themselves and their group

Entrepreneurial Traits

Entrepreneurs are typically risk-takers, adaptable, and persistent
They are often planners, and skilled at motivating themselves and others

Entrepreneurship and Economics

Entrepreneurship and economics share numerous attributes: job creation, competition, risk-taking, learning, and experimentation.
Entrepreneurs create new businesses, contribute to national income, drive social change, and promote community development
They also contribute to international trade and create diverse products and services

Business Viability and Growth

Finding a niche market is important for success
Determining the break-even point is crucial for understanding profitability
Growth is essential for the long-term survival of a business
It allows businesses to attract talent, fund investments, take advantage of new opportunities, and expand services
Growth drives business performance and profitability

Cost Accounting

Cost accounting determines the cost of producing a single unit
It assists in determining the selling price of a product

Different Types of Venture Costs

Direct costs: those directly tied to a particular project or activity
- Examples include raw materials, labor, and distribution.
Indirect costs: those incurred for general objectives and not easily linked to a specific project or activity
- Examples include services of the accounting staff, utilities, postage, and office supplies.
Fixed costs: costs that remain constant as activity levels change
- Examples include rent and factory lighting.
Variable costs: costs that increase or decrease in direct proportion to changes in activity levels
- Examples include raw materials and sales commissions.
Stepped costs: fixed within a range, but increase in steps when activity reaches a certain level
- Example: number of supervisors needed for a workforce.
Semi-variable costs: costs that have both a fixed and variable component
- Examples include telephone bills and water bills.

Break-Even Point

Calculated where total costs equal total revenue
Businesses neither profit nor lose money at this point
Used to compare cost and revenue estimates
Formula: BE(Q) = TFC / (SP - VC)

Business Vision and Mission

Communicate the firm's core values and goals to all stakeholders
Create a sense of unity and drive all stakeholders to action
Key components: Customers, Products/services, Markets, Technology, Survival, Philosophy, Self-concept, Public image, and Employees
Must be evaluated and written to be motivating and actionable

Organisational Structures

The purpose of an organizational structure is to minimize internal and external uncertainties.
It defines decision-making levels, coordination, supervision, and task allocation.
Organizations have different structures based on their objectives.
Functional Structure: Groups workers by similar skills and tasks, such as sales, marketing, finance, human resources, and production.
Advantages: simple, inexpensive, specialization, quick decision-making.
Disadvantages: Accountability at the top, limited career development, low morale, narrow thinking.

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Description

Test your knowledge on the key traits of entrepreneurial leaders and the impact of entrepreneurship on economics and business growth. Explore the essential qualities that drive successful entrepreneurship, including communication, adaptability, and perseverance. Discover how entrepreneurial efforts contribute to community development and job creation.