In 2022, Hurricane Lucy destroyed Alex’s engineering business.
He took out a £20m loan and remortgaged his house to restart his business.
Which one of the following entrepreneurial characteristics best describes Alex’s actions?
Select ONE answer
- Profit satisficer
- Resilient personality
- Social entrepreneur
- Risk avoider
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
- Not correct – because profit satisficers would have borrowed the minimum amount of money
- Correct – Definition of entrepreneurial characteristics e.g. personality traits that an entrepreneur will have in order to start and run a successful business. Alex oses his business and goes to considerable lengths to restart it e.g. re-mortgages his house. He is not willing to accept defeat/closure and is determined to continue, which demonstrates resilience.
- Not correct – because Alex has not indicated any intention to reinvest profits in any social enterprise, which is an entrepreneurial motive rather than a characteristic
- Not correct – because a risk avoider would not risk his house
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