Business 2014 exam 2
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Explain what "a tolerance for ambiguity" refers to and why it is an important personal characteristic
- define a set course and move ahead with that course while remaining conscious of the fact the correction may need to be made to that course in light of new information gained along the way
- Important or perseverance in the face of uncertainty
Explain what "calculated risk taking capabilities" refers to and why it is an important personal characteristic
- adequately assess opportunities for associated risks in a logical manner
- ensure that the risks that they are taking are likely to result in a return of profit
Explain what "internal locus of control" refers to and why it is an important personal characteristic
- not relying on faith or good luck, you are responsible
- allows entrepreneurs to take control of their businesses and its position
Explain what "high regard for integrity and reliability" refers to and why it is an important personal characteristic
- allowing potential buying, investors, suppliers and financiers to build a repour with the entrepreneur and the business
- important for basis of trust and goodwill
Why is the ability to build a strong
team an important characteristic to possess?
- provide expertise that the entrepreneur does not possess
- ideas, solutions and different perspectives
- additional minds and hands
- the potential for growth
- emotional and general support
Why is the ability to build a strong networks an important characteristic to possess?
- useful insights into industries
- source of resources
- further contacts
- new business ideas
- extend an existing client base
How do the networks of entrepreneurs differ from other peoples networks?
- marry both social and business aspects
- business networks are built around friendship
- social networks are seen as a source of potential resources for the business
Identify and explain the various types of risk that exist at the personal level and which should be considered as part of the process of determining whether or not to start and pursue a particular entrepreneurial venture.
- 4 types of risks
- 1 financial, potential for loss of assets
- 2 career, better than the current career
- 3 social, time away from family and friends
- 4 health, stress and fatigue
But what constitutes “success”?
- realizing a new life style
- realizing a sense of achievement
- becoming your own boss
- achieving social status
- realising a financial profit
But what constitutes “financial success”?
- covering the opportunity cost
- compensate for time and effort invested
- compensate for financial risk taken
- compensate for uncertainty of the future
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