1a.
Entrepreneurship refers to the process of starting and running a business or organization, typically by
identifying opportunities, taking risks, and creating value through innovation. It involves the ability to organize and
manage resources—such as capital, people, and ideas—to launch and grow a new venture, often with the goal of
making a profit.
1b. Corruption: Entrepreneurs may have to pay bribes or unofficial fees to get things done or access basic services,
raising the overall cost of doing business.
ii. Market: Consumer behavior can be unpredictable, with fluctuating demand due to economic instability, changes
in disposable income, or shifts in consumer preferences
iii. Finance: Banks and financial institutions often charge high-interest rates for loans, which makes borrowing
costly and unaffordable for many small businesses.
iv. Infrastructure: Poor roads, inadequate transportation networks, and traffic congestion increase costs for
moving goods, delay deliveries, and can hurt business efficiency.
Aspect Enterprise Entrepreneurship Entrepreneur
A business or organization
The process of starting, organizing, An individual who organizes,
involved in economic activities,
Definition managing, and assuming the risks manages, and takes on the risks
such as producing goods or
of a business venture. of a business or enterprise.
services.
The business or organization The process and activities of The person who initiates and
Focus
itself. creating and managing a business. leads the business venture.
The individual who takes the
A company or entity that The act of establishing and
Role initiative to start and manage a
conducts business activities. managing a new business.
business.
Primary Operations, management, and Risk-taking, innovation, and value Decision-making, leadership,
Concern production of goods or services. creation. and risk-bearing in business.
It may face business risks Entrepreneurs face the most
Risk Entrepreneurs take on personal,
depending on market conditions direct risk, including financial
Involvement financial, and business risks.
and management. and personal risks.
Bill Gates (Microsoft), Steve
Microsoft, Apple, or any small Developing a tech startup,
Examples Jobs (Apple), or any individual
business like a local restaurant. launching a new product.
business owner.
QUESTION 2
2a. Paid Employment (Working for an Employer)
Advantages:
1. Stable Income – Regular salary or wages provide financial security.
2. Employee Benefits – Access to health insurance, pension, paid leave, and other perks.
3. Fixed Working Hours – More predictable schedule, allowing for better work-life balance.
4. Career Growth Opportunities – Potential for promotions, training, and skill development.
5. Less Financial Risk – The employer handles business risks and expenses.
Disadvantages:
1. Limited Earning Potential – Salary is fixed, with slow increments compared to business profits.
2. Lack of Control – Employees must follow company rules, policies, and decisions.
3. Job Insecurity – Risk of layoffs, downsizing, or termination.
4. Limited Creativity – Less freedom to implement personal ideas or innovations.
5. Workplace Stress – Pressure from deadlines, targets, and office politics.
Self-Employment (Owning a Business or Working Independently)
Advantages:
1. Unlimited Earning Potential – Income depends on effort, skills, and business success.
2. Independence & Flexibility – Freedom to set work hours and make decisions.
3. Job Security – No risk of being fired or laid off.
4. Creative Control – Ability to innovate and shape business strategies.
5. Personal Fulfillment – Satisfaction from pursuing passion and building something unique.
Disadvantages:
1. Financial Risk – No guaranteed income; profits may be unpredictable.
2. Long Working Hours – Entrepreneurs often work beyond regular business hours.
3. No Employee Benefits – No paid leave, insurance, or pension unless personally arranged.
4. High Responsibility & Stress – Managing all aspects of the business can be overwhelming.
5. Difficulty in Raising Capital – Getting loans or investors can be challenging without a steady income.
2b. Income – The money an individual or business earns from various sources, such as salaries, wages, profits,
investments, or other financial gains.
Expenditure – The total amount of money spent on goods, services, bills, and other financial obligations within a
given period.
Saving – The portion of income that is not spent but instead set aside for future use, typically kept in a bank,
investment, or emergency fund.
2c. A shopping habit refers to repeated behaviors, patterns, and decisions people make when purchasing goods or
services. It is influenced by personal preferences, financial situation, lifestyle, emotions, and external factors like
marketing and social trends.
QUESTION 3
3a. An investment portfolio is a collection of financial assets owned by an individual or organization
A brokerage is a financial service firm or platform that allows investors to buy and sell securities like stocks and
bonds. It acts as a middleman between investors and the financial markets.
3b. Stocks – Shares of companies that offer ownership and potential profit.
Bonds – Debt securities that pay interest over time.
Mutual Funds & ETFs – Pooled funds invested in various securities.
Real Estate – Property investments for rental income or appreciation.
Commodities – Gold, oil, and other physical goods.
Cryptocurrency – Digital assets like Bitcoin and Ethereum
3c. Earns Passive
Encourages Saving & Investing –.
Supports Economic Growth
QUESTION 4
4a. Communication in an enterprise refers to the process of sharing information, ideas, and messages within a
business or organization. It enables employees, managers, and stakeholders to collaborate, make informed
decisions, and achieve business goals effectively.
4b. Importance of Communication in an Enterprise:
Enhance teamwork and collaboration.
Improves decision-making and problem-solving.
Strengthens relationships with customers and stakeholders.
Boosts employee engagement and productivity
4c. Shared Goals &
Collaboration & Cooperation
Effective Communication.
