1.1 - Enterprise and entrepreneurship

Question 1

<p>1.1.2 - What are three risks that start-ups face?</p>

Answer 1

<p>- Business failure
<br></br>- Lack of (financial) security
<br></br>- Finacial loss</p>

Question 2

<p>1.1.2 - What is the difference between variable and fixed cost?</p>

Answer 2

<p>- Variable costs are costs that depend on the amount of products you manufacture (e.g. Raw materials)
<br></br>- Fixed costs (overheads) are costs that remain no matter your production rate (e.g. Rent)</p>

Question 3

<p>1.1.2 - How do you work out variable cost?</p>

Answer 3

<p>Cost per unit x sales volume</p>

Question 4

<p>1.1.2 - What are financial rewards for a start-up?</p>

Answer 4

<p>- Survival
<br></br>- Profit
<br></br>- Wealth
<br></br>- Income
<br></br>- Financial Security</p>

Question 5

<p>1.1.2 - What are non-financial rewards for a start-up?</p>

Answer 5

<p>- Personal Satisfaction
<br></br>- Challenge
<br></br>- Independence
<br></br>- Control
<br></br>- Helping Others</p>

Question 6

<p>1.1.3 - What is a stakeholder?</p>

Answer 6

<p>Any person with interest in the business</p>

Question 7

<p>1.1.3 - What are the three purposes of business enterprise?</p>

Answer 7

<p>- To meet customer needs
<br></br>- To add value
<br></br>- To provide goods and services</p>

Question 8

<p>1.1.3 - How may a business add value?</p>

Answer 8

<p>- Convenience
<br></br>- Quality
<br></br>- Branding
<br></br>- Design
<br></br>- USP</p>

Question 9

<p>1.1.3 - What are the roles of an entrepreneur?</p>

Answer 9

<p>- Organise resources
<br></br>- Make business desicions
<br></br>- Take risks</p>