1.1

Question 1

What is a Product?

Answer 1

anything (usually physical) that is capable of satisfying a customer needs e.g cars, mobile phones, pen

Question 2

What is a Service?

Answer 2

An act that a business carries out in exchange for money e.g barber, dental treatment, gardening

Question 3

Give an example of why new business ideas come about!

Answer 3

1. Change in technology e.g internet creating a new market to sell (e.g Amazon)
2. Robotics e.g Just Eats robot
   3.New innovations e.g games on an app
   4.Change in what consumers want e.g social media (vinted, etsy), ready made meals, more organics, new diets and allergies.
3. Change in trends and tastes

Question 4

What does e-commernce mean?

Answer 4

electronic commernce

Question 5

What does Obsolete mean?

Answer 5

Product or Servic that is no longer used or that is out of sale.

Question 6

How do new buisness ideas come out?

Answer 6

1. Original ideas e.g product might solve a problem, gap in the market, meets the need of their customers (Netflix)

Question 7

What is an Entrepreneur?

Answer 7

Someone who starts their own business based on an idea they had.

Question 8

Why would someone want to be an Entreprenuer?

Answer 8

Flexibility, Independence, Pursue Your Passion, Financial Potential, Creative Freedom, Personal Growth, Job Creation, Community Impact

Question 9

What is a Risk?

Answer 9

A business risk is one that may lead to failure to achieve the goals of the organisation, for example to not make a profit (called making a loss).

Question 10

What is Business Faliure?

Answer 10

Business failure is when a business ceases to trade or when a business does not trade in a profitable way or when a business makes a terrible decision

Question 11

What are 3 Buisness risks?

Answer 11

1. Finicial loss,
2. Lack of security
3. Business faliure

Question 12

More business risks?

Answer 12

IP issues, Cyber attacks, Economic problems, Poor reputation, Employment laws, Change in tastes and trends, Cash flow problems, Natural disasters, Failure to plan, Staff training, Operational risks, Staff reliability, Commercial risks

Question 13

What are Business rewards?

Answer 13

A business reward is a benefit that it brings to the owner e.g. being
their own boss

Question 14

Examples of Buisness rewards?

Answer 14

Business success, Profit, Independance

Question 15

What are three main roles of business enterprise?

Answer 15

To produce goods or services, To meet customer needs, To add value

Question 16

What are the 4 things to produce goods and services?

Answer 16

Land – somewhere to produce the goods e.g. a farm
Labour – people to work in the business e.g. farm workers
Capital – money to get the business started
Enterprise – This is the drive or motivation from the owners to
start a business

Question 17

What is ‘to add value’

Answer 17

Added value is the difference between what a business pays
its suppliers, and the price it is able to charge for its product
or service

Question 18

How do you add value?

Answer 18

Branding, Design, USP, Quality, Convenince

Question 19

What are the 3 roles of an Entreprenuer?

Answer 19

Organises resources, Makes business decisions, Takes risks