1.1 Flashcards

1
Q

Why do new business ideas come about?

A
  1. Changes in technology
  2. Changes in consumer wants
  3. Products becoming obsolete
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2
Q

What are the 2 types of new ideas for businesses?

A
  1. Original ideas (completely new due to a gap in the market)
  2. Adapting existing ideas to fit the changing market
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3
Q

What are 3 business risks?

A
  1. Risk of failure - may not fit customer needs / wants
  2. Financial loss - starting a new business requires a lot of investment
  3. Lack of security - entrepreneurs often lose the security of regular wages and pay that they had with their old job
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4
Q

What are some business rewards?

A
  1. Independence of a business
  2. Business success - if the business becomes big the entrepreneur will be able to sell the business for a large sum of money
  3. Financial rewards - keep the profit
  4. Persue an interest
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5
Q

What is a good?

A

A physical (tangiable) product tha a business sells
Eg Coca Cola

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6
Q

What is a service?

A

A non physical (intangible) action performed by a business to help customers
Eg Snapchat

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7
Q

What is a customer need?

A

Something that people can’t live without
Eg water

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8
Q

What is a customer want?

A

Products / services that we don’t need but would like to have
Eg jewellery or television

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9
Q

What is enterprise?

A

A business or organisation

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10
Q

What are the 5 ways to add value?

A
  1. USP - unique selling point
  2. Quality
  3. Convenience
  4. Branding
  5. Design
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11
Q

What does an entrepreneur have to do to be successful?

A
  1. Take risks
  2. Identify business opportunities
  3. Be innovative - spot the gap in the market
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