1.1 ENTERPRISE Flashcards
purpose of business activity 1m
to provide goods
one reason why an entrepreneur may find setting up a business rewarding 3m
- as if the business makes a large profit
- the entrepreneur could make more money than before they started the business
- giving them a better quality of life
benefit of building a good brand image for products 3m
- this will add value to the products
- allowing customers to recognise it as reliable and trustworthy
- so they may be willing to spend more money on the products
reasons why new business ideas may come about 6m
- overtime technology changes and new technology comes around
- causing new business ideas that use this new technology
- due to customer wants new business ideas can be formed by providing these wants
- if a business idea becomes obsolete a business owner will have to come up with new business ideas so that their businesses survive
the responsibilities an entrepreneur needs to fulfil in order to run a new business 6m
- entrepreneurs need to be willing to take risks as there are many unknowns involved in running a business, such as investing money that may be lost if the business fails
- Even though an entrepreneur can write a business plan before they start, they cannot know exactly what may happen, so they need to be able to take calculated risks
- entrepreneurs need to make business decisions. There a lot of decisions to be made when running a new business, such as the business’s aims, its structure, who to employ, and what to do if things go wrong
- entrepreneurs need to be able to organise resources
- entrepreneurs need to be able to organise resources for the day to day running of the business, and should also be able to plan for the future
risks and rewards of running a business 4m
risk = using own money or taking out a loan - the business may fail (financial loss) so you lose your money or you cannot pay back your loan
risk = less security - leaving your old job - if business fails you may not have a job to go abck to which can imapct the quality fo your life
reward = making large profit - earning more than you did before the business means better quality of life
reward = rewarding as the entrepreneur has the independance to choose what they do day-today and what direction the business goes in
gaps in the market
-A gap in the market exists when a customers’ wants or needs are not yet being fulfilled by a business.
example of an innovation?
An example of innovation would be a lightbulb being adapted to become an energy efficient LED lightbulb. This involves taking a product and making changes to improve it. or something similiar
a change in the demographics of a country?
Demographics are the different characteristics that make up a population.
What is e-commerce?
E-commerce is any business transaction that takes place using the internet.
Which best describes the adaptation of a product?
Changing an existing product to appeal to new customers.
describe a dynamic market?
A dynamic market is a rapidly changing business environment.
an obsolete product?
A product that is out-of-date, and is near or at the end of its life is obsolete.
an opportunity presented to businesses by social media?
Social media makes it easier to find out what customers think about products as businesses can communication with them directly.
What is a target market?
A target market is a group of people or area of a market that a business aims to sell its products to.
