Discuss the following statements. Express your ideas and say why you think so
Decide which of the advantages and disadvantages below you would associate with the following forms of business. In some cases there may be more than one correct answer.
Advantages
1. You have total control of your business.
2. This is a good way of sharing the pressure and work of starting a business.
3. The financial risks that you are taking are restricted.
4. You can increase your capital by selling shares.
5. You can go into business with limited risk and outlay.
Disadvantages
1. There is a danger that conflicts of personality could ruin your business.
2. It may be difficult to expand.
3. You may have to sell your possessions if the company goes into debt
4. Do the questionnaire
The questionnaire:
How do you rate as an entrepreneur?
1.Are you a self starter?
a. I only make an effort when I want to.
b. If someone explains what to do, then I can continue from there.
c. I make my own decisions. I don't need anyone to tell me what to do.
2.How do you get on with other people?
a. I get on with almost everybody.
b. I have my own friends and I don't really need anyone else.
c. I don't really feel at home with other people.
3.Can you lead and motivate others?
a. Once something is moving I'll join in.
b. I'm good at giving orders when I know what to do.
c. I can persuade most people to follow me when I start something
4.Can you take responsibility?
a. I like to take charge and to obtain results.
b. I'll take charge if I have to but I prefer someone else to be responsible.
c. Someone always wants to be the leader and I'm happy to let them do the job.
5.Are you a good organizer?
a. I tend to get confused when unexpected problems arise.
b. I like to plan exactly what I'm going to do.
c. I just like to let things happen.
6.How good a worker are you?
a. I'm willing to work hard for something I really want.
b. I find my home environment more stimulating than work.
c. Regular work suits me but I don't like it to interfere with my private life.
7. Can you make decisions?
a. I am quite happy to execute other people's decisions.
b. I often make very quick decisions which usually work but sometimes don't.
c. Before making a decision, I need time to think it over.
8.Do you enjoy taking risks?
a. I always evaluate the exact dangers of any situation.
b. I like the excitement of taking big risks.
c. For me safety is the most important thing.
9.Can you stay the course?
a. The biggest challenge for me is getting a project started.
b. If I decide to do something, nothing will stop me.
c. If something doesn't go right first time, I tend to lose interest.
10. Are you motivated by money?
a. For me, job satisfaction cannot be measured in money terms.
b. Although money is important to me, I value other things just as much.
с. Making money is my main motivation.
11. How do you react to criticism?
a. I dislike any form of criticism.
b. If people criticize me I always listen and may or may not reject what they have to say.
c. When people criticize me there is usually some truth in what they say.
12. Can people believe what you say?
a. I try to be honest, but it is sometimes difficult or too complicated to explain things to other people.
b. I don't say things I don't mean.
c. When I think I'm right, I don't care what anyone else thinks.
13. Do you delegate?
a. I prefer to delegate what I consider to be the least important tasks.
b. When I have a job to do I like to do everything myself.
c. Delegating is an important part of any job.
14. Can you cope with stress?
a. Stress is something I can live with.
b. Stress can be a stimulating element in a business.
c. I try to avoid situations which lead to stress.
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Keys to Questionnaire
44 or above
You definitely have the necessary qualities to become the director of a successful business. You have a strong sense of leadership, you can both organize and motivate and you know exactly where you and your team are going.
Between 44 and 22
You may need to think more carefully before setting up your own business. Although you do have some of the essential skills for running business, you will, probably, not be able to deal with the pressures and strains that are a part of the job. You should perhaps consider taking some professional training or finding an associate who can compensate for some of your weaknesses.
Below 22
Managing your own business is not for you. You are better suited to an environment where you are not responsible for making decisions and taking risks. To operate successfully you need to follow well defined instructions and you prefer work that is both regular and predictable.
Writing
Prepare a short checklist of the questions that you would need to ask yourselves before starting a business.
Examples: How much money will I need?
What starting investments are necessary?
Where to place the enterprise?
What are the prospects of the business?
THE RESEARCH TRAINING
Choose the best response to complete each sentence looking for additional information if necessary:
1. A good business plan defines your business and ___________________ (= describes/lists) your goals.
a) identifies b) indents c) idealizes
2. A lot ___________________ (= depends) upon how comprehensive your business plan is.
a) hinges b) haggles c) hassles
3. A list of your assets, liabilities and net worth is what's known as a ___________________ sheet.
a) balanced b) balancing c) balance
4. Many new business owners rely on ___________________ (= funding from other sources, not their own) to start and develop their business.
a) outer funding b) outside founding c) other funds
5. How do you plan to get the financial ___________________ (= money, etc.) to start your business?
a) recourse b) recurrence c) resources
6. A cash ___________________ analysis is an analysis of a company's financial "health".
a) flow b) flowing c) flood
7. You shouldn't ___________________ when it comes to drawing up a business plan. (= You shouldn't take too long to finish it)
a) drag your feet b) drag your shoes c) drag it along
8. We have a well ___________________ vision for our business.
a) thought b) strong c) thought-out
9. Your business' ___________________ refers to how easy (or difficult) it is to market/promote it.
a) market savvy b) marketability c) market watch
10. Any bank will want to make sure your business has a good chance of being ___________________ before giving you a loan.
a) profit-oriented b) profitable c) profit-sharing
11. There are ___________________ (= a lot) of books that can teach you how to write an effective business plan.
a) scores b) number c) many
12. It helps to demonstrate a high level of ___________________ in your knowledge of all matters relating to your business.
a) sophistry b) sophistication c) intoxication
13. The "executive summary" is the name of the section which ___________________ (= outlines) the main body of the business plan.
a) summarizes b) executes c) sums
14. If you carried out a market study to gather information relevant to your business, make sure you include the ___________________ of this study in your business plan.
a) finding b) findings c) found information
15. A more formal way of saying "To obtain outside funding" is "To ___________________."
a) get cash b) request outside help c) acquire external capital
16. You must ___________________ to the organization (= let the organization know) why they should invest in your enterprise.
a) convince b) contest c) convey
17. Which one of these words is NOT a synonym for "business"?
a) capital b) enterprise c) venture
18. The language used in a business plan should be clear and ___________________. (= easy to understand)
a) strong b) straightforward c) cumbersome
19. We should ___________________ a business planning consultant before drawing up a plan.
a) touch b) get in line with c) get in touch with
20. This description is not ___________________.
a) detailed enough b) enough details c) enough detailed
21. This ___________________ (= number) is the estimate of sales for the first three years.
a) figure b) numeral c) fact
22. For certain types of businesses, a list of people who have already ___________________ an interest in buying your products should be included in the business plan.
a) said b) expressed c) exclaimed
23. Here is a description of the market segments (= groups of people/organizations) we will be ___________________. (= we will be focusing on)
a) trying b) searching c) targeting
24. We plan to purchase 60% of the equipment, and ___________________ (= rent) the other 40%.
a) lease b) take out c) take on
25. How do you plan to advertise your products? Do you have a detailed market ___________________ plan?
a) penitentiary b) pension c) penetration
26. We have an issue with certain ___________________ (= details/characteristic) of your sales strategy.
a) characters b) aspects c) flashbacks
27. Did you include an analysis of ___________________ (= similar) products available on the market today?
a) comparable b) compared c) common
28. This is a detailed list of all the costs ___________________ with (= relating to) the program.
a) assorted b) associated c) aspirated
29. Do you have to obtain any legal ___________________ before the product can be introduced on the market?
a) law b) authorization c) acceptance
30. An "organization chart" describes the ___________________ of the enterprise/business.
a) building b) construction c) structure