Cours 3

Nearly every person who makes the decision to start a business is an entrepreneur because he or she is willing to take a risk. Usually people decide to start a business to gain profits and to “do something on their own” or to be their own boss.

Entrepreneurs then gather the factors of production and decide on the form of business organization that best suits their purposes. Anyone hoping to become an entrepreneur must also learn as much as possible about the business he or she plans to start. This process includes learning about the laws, regulations, and tax codes that will apply to the business.

Elements of Business Operation

To start a business, you must make potential customers aware that your services are available for a price. You could have one-page fliers printed to advertise your business and pass them out. You could also buy advertising space in the local newspaper.Every business, regardless of size, involves four elements: expenses, advertising, receipts and record keeping, and risk.

Expenses

If you own a painting business, you will need to purchase brushes and paint. As your business grows, you might invest in paint sprayers so that you can complete jobs faster. This new equipment would add to your income, but will probably take more money capital than you have on hand.

Advertising

You will quickly find out that letting potential customers know that you are in business is costly. Once you have customers, however, information about your business will spread by word of mouth.

Receipts and Record Keeping

No matter how small your business is, having a system to track your expenses and income is key to your success. All receipts should be safely filed and saved.

Risk

Every business involves risks. You must balance the risks against the advantages of being in business for yourself - including profit versus loss.

Depending on the kinds of jobs you do, you will need equipment and replacement parts. At first, you might buy parts as you need them for a particular job: In time, you will find it easier to have an inventory. An inventory is a supply of whatever items are used in a business.

Probably one of the first things you want to do, if you have not already done so, is buy a computer. With the computer, you also should purchase the programs that will allow you to keep track of all your expenses and all your receipts. Many such programs exist and are relatively inexpensive. Programs write checks for you, calculate your monthly profit and loss, tell you the difference between what you own and what you owe (called net worth), and so on.

As an entrepreneur, you are taking many risks, but the profit you expect to make is your incentive for taking those risks. For example, if you spend part of your savings to pay for advertising and equipment, you are taking a risk. You may not get enough business to cover these costs.

Whenever you buy a special part for a job, you are taking a risk. Suppose you do the work and your customer never pays you. You are even taking a risk with the time you spend. You are using time to think about what you will do, to write ads, to set up the bookkeeping, and so on.

This time is an opportunity cost. You could have used it to do something else, including work for someone for a wage. If you work for someone else, you take only the risk of not being paid, which is usually small. As an entrepreneur your risks are great, but so are the potential rewards.

Quiz 1: Ways of disapproving

•       Q1 There is no way that I can agree to you ....... early today.

(a) submitting (b) renouncing (c) leaving (d) departing

•       Q2 I must object and make it clear that I am totally ....... any measures that suggest changes to the original scheme.

(a) up (b) without (c) against (d) off

•       Q3 He has the ....... of always rejecting any idea that will change the current arrangements.

(a) habit (b) custom (c) task (d) job

•       Q4 I cannot condone that sort of ....... in my establishment and would ask you to remember that in future.

(a) routine (b) manners (c) going (d) behaviour

•       Q5 I have no choice really but to turn ....... your recent proposal because it is completely unworkable.

(a) off (b) over (c) down (d) across  

•       Q6 They can't possibly go ....... with your suggestions because it will involve too much expenditure.

(a) over (b) along (c) in (d) above

•       Q7 Quite honestly I'd have to be out of my ....... to sanction what is a crazy proposition.

(a) sense (b) balance (c) thought (d) mind

•       Q8 When her father discovered that his daughter wanted to marry a pop singer, he decided to put every ....... In their way to prevent the marriage.

(a) obstacle (b) burden (c) impediment (d) problem

•       Q9 He told me there was definitely no ....... that I would pass my examination until I did some work.

(a) occasion (b) chance (c) opportunity (d) time

•       Q10 You could tell by the ....... he refused to smile that he didn't like the story.

(a) method (b) plan (c) way (d) path

Quiz 2: Advertising

•       Q1 In order to make a sensible ....... among the different vacuum cleaners available, it is important to do some research.

(a) comparing (b) comparison (c) compares (d) comparative

•       Q2 The local department store has to make a sustained effort at this time of the year to ....... customer demand for summer clothing.

(a) satisfy (b) satisfaction (c) satisfies (d) satisfying

•       Q3 A good team leader must be able to ....... his colleagues to face the challenge of a downturn in business.

(a) inspiring (b) inspiration (c) inspires (d) inspire

•       Q4 The ....... trend in children's desire to wear designer label clothes should be exploited.

(a) currant (b) current (c) occuring (d) occured

•       Q5 You have to ....... the public that it is in their own interest to read the instructions on all our medicines.

(a) convict (b) conviction (c) convince (d) convincing

•       Q6 In order to survive in this business you must adopt a ....... stance.

(a) competition (b) competing (c) competitor (d) competitive

•       Q7 The ....... of alcohol is not allowed in any of the company's premises in order to present a clean image.

(a) consumer (b) consumption (c) consuming (d) consumes

•       Q8 When you are setting out to ....... new customers in an advertisement, choose the right words.

(a) attraction (b) attractive (c) attract (d) attracts

•       Q9 The really effective television commercial is the one that ....... you of its authenticity.

(a) persuades (b) persuasion (c) persuasive (d) persuading

•       Q10 I can strongly recommend this ....... as the best available on the market today.

QUIZ 2