Save
Busy. Please wait.
Log in using Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password

why


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't know
Remaining cards (0)
Know
0:00
share
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Bcom MBM Year 2

Business Management

Name 5 effects entrepreneurs have on the Economy. (Impetus) State of the Economy. Contribution of GDP. Employment creation. SMME's are the only growth sector. Creation of wealth.
What is the definition of an Entrepreneur? An entrepreneur is a person who sees an opportunity in the market, gathers resources and creates and grows a business venture to satisfy these needs. He/she takes the risk of the venture and is rewarded with profit if it succeeds.
Name the 5 factors of the Entrepreneurial Orientation. Personal Orientation. Culture. Education. Family. Work Experience.
Name the two success factors of Entrepreneurs. Entrepreneurial success factors or personal characteristics. Managerial success factors or managerial skills.
Name four Entrepreneurial success factors. Creativity. Leadership. Good human relations. Perseverance. Risk Orientation. Commitment. Positive attitude.
Name four Managerial success factors. Planning. Knowledge of competitors. Mainly market orientated. Client service. High quality work (enjoys priority). Financial and management insight. Business knowledge/skills. The use of experts.
Name the four steps in the entrepreneurial process. Identify and evaluate the opportunity. Develop the business plan. Determine the resources required. Start and manage the enterprise.
Name the three things entrepreneurship is a critical solution for in the economy. Low economic growth. High unemployment. An unsatisfactory level of poverty.
Name five ways in which entrepreneurship is a catalyst for the economy. Entrepreneurship is a critical solution. Choosing entrepreneurship as a career. Entrepreneurship and the informal sector. Relationship between entrepreneurs and the economy. Small, Medium and Micro Enterprises (SMME's).
Explain "Entrepreneurship and the informal sector". If the customer does not buy, the entrepreneur does not live.
Describe the relationship between entrepreneurs and the economy. Multi-faceted and complex.
Name the five levels of entrepreneurial sophistication and describe them in short. Basic survivalist: No economic independence. Pre-entrepreneur: Collectivism. Subsistence entrepreneur: Self-employed. Micro-entrepreneur: Zero to nine employees. Small-scale entrepreneur: Ten to 49 employees.
Name the five factors that make up the background of an entrepreneur. Childhood family environment. Education. Personal values. Age. Work experience.
Name four characteristics of an entrepreneur. Passion. Locus of control. Need for independence. Need for achievement. Risk taking and uncertainty. Creativity and innovation. Determination and persistence.
Name the source of Entrepreneurial role models and support systems. Entrepreneurial networking.
Name the four types of Entrepreneurial networking. Social networks. Personal networks. Extended networks. Other networks.
Explain the entrepreneurial networking, "Social networks" Include communication and exchange of information, e.g. two entrepreneurs exchanging business cards.
Explain the entrepreneurial networking, "Personal networks" Include those people with whom the entrepreneur has day-to-day direct contact, e.g. satisfied customer.
Explain the entrepreneurial networking, "Extended networks" Focused on a network of organizations rather than an individual, e.g. Business Women’s Association, Foundation for African Business and Consumer Services.
Explain the entrepreneurial networking, "Other networks" Internet, lawyers, suppliers, investors, bankers, government policy, competitors, role models etc.
What is another word that can be used to describe "push factors of Entrepreneurship"? Necessity.
What is another word that can be used to describe "pull factors of Entrepreneurship"? Opportunity.
Name four push factors of Entrepreneurship. Unemployment. Job insecurity. Disagreement with management. Does not “fit into” the organisation. Limitations of financial rewards from conventional jobs. No other alternatives.
Name four pull factors of Entrepreneurship. Independence. Achievement. Recognition. Personal development. Personal wealth.
Name four challenges facing Entrepreneurs and SMME's in South Africa. Access to start-up and expansion finance. Access to markets. Access to appropriate technology. Access to human resources.
Under "Access to start-up and expansion finance" as a challenge facing Entrepreneurs and SMME's, name three reasons for the lack of access and four ways to overcome the challenge. Reasons: Risk aversion of the banking sector to SMME's. Decline in strong alternative financial institutions. Inadequate funding proposals and business plans. Solutions: Business success. Training. Financial products. Financial guidance.
Under "Access to markets" as a challenge facing Entrepreneurs and SMME's, name a reason for the lack of access and five ways to overcome the challenge. Reason: Lack of sustainable markets for products and services, tending to produce services that do not have a ready market. Solutions: Marketing training. Commitment to marketing. Commitment to market. Market-orientated products. Networking.
Under "Access to appropriate technology" as a challenge facing Entrepreneurs and SMME's, state the four advantages of using up-to-date technology and a way to overcome the challenge. Advantages: Better/more competitive products/services. Improved efficiency. Reduced operational and production costs. Improved quality. Solution: Accessing technology by availing themselves to services offered by NRF, SABS, SAQI.
Under "Access to human resources" as a challenge facing Entrepreneurs and SMME's, state the reason for the lack of access as well as 6 ways of overcoming the challenge. Reason: Entrepreneurs do not know how to manage ideas or the people within a business. Solutions: Build team spirit. Nurture life-long learning. Employees responsible for customer needs. Entrepreneurial climate. Being role model. Code of ethics.
What is creativity a result of and what should the outcome be? Creativity is firstly a result of a thinking process. The product/idea should have novelty as a result and should create value.
Is the thinking process conventional or unconventional and what does that mean? The thinking process is normally unconventional, meaning that previously accepted ideas/concepts are normally rejected or modified.
Which two things are the thinking process supported by and which two things does it consume? Supported by: Performance. Motivation. Consumes: Time. Energy.
Why is the problem definition integrated in the thinking process? The initial problem is normally vague and not structured.
Name seven myths surrounding creativity. Creativity is an innate skill/can't be acquired through training. Need to be a rebel to be creative. Only artists are creative. Need to be crazy to be creative. Intelligence = creativity. Group vs Individual creativity. All products were accidental.
Name the three barriers to creativity. Environmental barriers. Cultural barriers. Perceptual barriers.
Name three environmental barriers to creativity. Social. Economic. Physical.
Name the five creative techniques. Random input. Problem reversal. The 5Ws/H technique. Association technique. The discontinuity principle.
Name the seven critical areas of innovation. New products. New services. New production techniques. New operating practices. New ways to deliver to the customer. New ways to inform the customer. New ways of managing the relationships within the organization.
Name the 8 forms of legal protection of the product. Patents. Know-how. Trade marks. Registered designs. Unlawful competition. Copyright. Plants. Licenses.
What is an opportunity? Opportunity is a gap left in the market by those who currently serve it.
Name five things that an idea must be. Attractive. Durable. Timely. Create or add value. Anchored in product or service to become an opportunity.
Name the seven criteria to screen opportunities. Industry and market issues. Economics. Harvest issues. Management team. Fatal flaw issues. Personal criteria. Strategic differentiation.
Under the criteria to screen opportunities, explain "Industry and market issues". The attractiveness of a market is determined by: market structure, market size, market capacity, market share and cost structure.
Under the criteria to screen opportunities, explain "Economics". A venture that achieves a positive cash flow quickly is attractive and ventures that require low start-up funds and little or no initial capital requirement are attractive.
Under the criteria to screen opportunities, explain "Harvest issues". This refers to starting and growing a business with the aim of selling it in future. Attractive ventures in attractive markets tend to have the harvest objective in mind.
Under the criteria to screen opportunities, explain "Management team". It is important and beneficial for a venture to have an entrepreneurial team that possesses proven experience within the chosen industry.
Under the criteria to screen opportunities, explain "Fatal flaw issues". A fatal flaw is a kind of a mistake that is very dangerous. The presence of one or more fatal flaws renders an opportunity unattractive.
Under the criteria to screen opportunities, explain "Personal criteria". Successful entrepreneurs have a good fit between what they wish to derive from the venture and what the venture requires of them.
Under the criteria to screen opportunities, explain "Strategic differentiation". This refers to how a venture positions itself to take advantage of the given market conditions to its benefit.
Name the five industry and market issues. Market structure. Market size. Market capacity. Market share. Cost structure.
What is the market structure? The interconnected characteristics of a market.
Name the elements of the market structure for 14 marks. The number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market.
Name the four basic types of market structures. Perfect competition. Oligopoly. Monopoly. Monopsony.
What is a market size? The number of buyers and sellers in a particular market.
What is a market capacity? The amount of a service or good that can be absorbed in a market without affecting the price.
What is a market share? Is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity.
What is a cost structure? Is the expenses that a firm must take into account when manufacturing a product or providing a service.
Which two things does cost structure involve? Fixed cost and variable cost.
Name four fatal flaw issues. Markets that are too small. Markets with overwhelming competition. Markets where the cost of entry is too high. Markets where entrants are unable to produce a sustainable competitive advantage.
Name six reasons why big businesses leave gaps in the market. Failure to see new opportunities. Underestimation of new opportunities. Technological inertia. Cultural inertia. Politics and internal fighting. Government intervention to support new and (smaller) entrants.
What is a window of opportunity? A window of opportunity is a short time period during which an otherwise unattainable opportunity exists.
Why is the window of opportunity the ideal time to act? After the window of opportunity closes, the opportunity ceases to exist. Since good deals on real estate, business offers, etc. do not exist forever, the window of opportunity is the ideal time to act.
Name the five steps in the holistic view of the window of opportunity. Seeing the window. Locating the window. Measuring the window. Opening the window. Closing the window.
What is the definition of a business plan? The business plan is a written presentation that carefully explains the business, its management team, its products or services and its goals together with strategies for reaching goals.
Name three reasons for compiling a business plan. To obtain funding. To serve an inside purpose. To be used as a tool to reduce risk.
Which format is to be used when compiling a business plan? Cover sheet. Table of contents. Summary. Products and/or services plan. Marketing plan. Operations plan. Management plan. Financial plan.
Name the seven things that should be done in a financial plan. People. Facilities. Money. Promotion. Administration. Replacement costs. Sundry costs.
Name three guidelines to select the most appropriate business plan. Understand how the new business is going to operate. Understand the purpose of the business plan. Understand the different types of business plans before choosing one.
Name 10 types functions of business plans. Planning new business. Expanding business. Strategic document for business. Loan. Shareholders. Sell business. Direction for management and staff. Prepare business for a merger. Prepare business for acquisition. Position business in market.
Name five ways to use the internet as a tool to compile a business plan. Information on such components as industry analysis, competitor analysis and market potential. Marketing tool. Competitor information. News groups and other online groups. Software for drawing up business plans.
Name four resources required when establishing a new business. Financial resources. Human resources. Physical resources. Information resources.
Name four financial resources. Equity finance. Debt finance. Revenue. Other.
Name two human resources. Forecasting human resource need. Recruiting candidates and select best person.
Name three physical resources. Fixed assets. Raw materials. General supplies.
Name two information resources. External environment. Internal working of business.
Name eight factors to consider when choosing a form of ownership. Nature of the business. Legal requirements Owners’ liability and accountability. Continuity and transfer of ownership. Management participation. Financing. Profit sharing. Income tax.
Name the four main types of business ownership. Sole proprietorship. Partnership. Close corporation. Private company.
Name the two types of legalities when it comes to business ownership. With legal personality. Without legal personality.
Name the five types of intellectual property rights. Copyrights. Designs. Patents. Trademarks. Counterfeit goods.
What is a design intellectual property right? Design registration gives the owner the right to prevent others from making, importing, using or disposing of the article in South Africa.
What is a patent? The registered exclusive right of an inventor to make, use or sell an invention.
Name the two types of patents. Design patent: the appearance of a product. Utility patent: a new process or function of a product.
What is a trademark? Any work, phrase, symbol, design, sound, smell, colour, product configuration, group of letters or numbers, or combination of these, adapted and used by a business to identify its products or service and distinguish them from others.
What are counterfeit goods? The manufacturing, production or making of any goods, in SA or elsewhere, without the authority of owner of the intellectual property rights .
Name the two types of taxes. Direct. Indirect.
Name four examples of direct tax. Individual income tax. Company tax. Secondary tax on companies. Tax on dividends from foreign-registered or incorporated companies.
Name three examples of indirect tax. Value-added tax. Excise and custom duties. Stamp duties.
Name four legal aspects in the normal course of business. Unemployment Insurance Fund (UIF). Compensation Fund. Trade licenses. Regional Services levies.
Name nine legal aspects in the normal flow of business. Concluding contracts. Licensing. Labour legislation governing employment in SA. Product liability. Standards. Fair trade, competition and consumer protection. Environmental legislation. Promotion of Access to Information Act. Usury Act.
Name seven factors to consider in the physical establishment of a business. Access to the target market. Availability of raw materials. Support and technical infrastructure. Transport infrastructure. Availability of labour and skills. Climatic conditions. Political and social stability.
What is a home-based business? A home-based business is located in the residence of the entrepreneur.
What is important to consider when using a home-based business? It is important that spatial and non-spatial boundaries between business and home be established to prevent the one from interfering with the other.
What is a residential-area based business? When an entrepreneur acquires the use of a residential property for business purposes, the rationale usually ranges from access to the target market, to convenience and affordability.
What is a shopping centre? Businesses dealing in fast-moving consumer goods(FMCG) generally need to find shopping or suburban retail centres in which to open a shop.
Name seven factors to consider when choosing a shopping centre. Feet count Parking Maintenance Conditions of lease agreement Security Attitude of centre management Location within the centre
Created by: AnDyEaTsYoUrToE
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards