1.1 - Enterprise and Entrepreneurship Flashcards
Define ‘Branding’
The name of an image that identifies one bussines product or service as unique
What are sources of business ideas?
- Original ideas
- Adapting existing products
- Business experiance
- Observation
- Changes in technology
- Changes in consumer wants and needs
List things that make a good business idea
- Solves a problem
- Cheaper/Better than an exisiting product or service
- Simpler/Easier than current products
- Focuses on the needs and wants of customer
Define ‘E-Commerce’
Electronic commerce
Selling and buying of goods or services over the internet
Define ‘Obsolete’
When a product is no longer required due to it being replaced by something new
Explain one way an entrepreneur might identify a new business idea (3 marks)
One way may be by having an original idea. This is becuase more people will buy it more as there is nothing else thats like it. This leads to them getting more consumer attention than other brands. Therefore they will have increased sales as they dont haveto worry about competitors or customers.
** This is only one of the few ways you can answer this 3 marker.
Define ‘Innovation’
Adapting to an orginal idea
Define ‘Invention’
A new creation
What is unlimited liability?
When there is no legal seperation between the owner and the business.The owner is personally resposible to pay all debts
- could mean that their own assests like cars or houses could be take away
What is limited liability?
The buisness owner/s are only responsible for the debts of the business
- only the value of their financial investment in the business can be taken away
Identify 3 risks of starting up a business
- Lack of resources
- Lack of investment
- Lack of security
- Lack of customers
Define ‘risk’
Possibility that something may go wrong
List 2 products that are now obsolete
- Wired telephone
- Gameboy
- VCR
Define ‘Tangible’
Something you can touch
Define ‘Intangible’
Something you can’t touch
What is goods? definition
Tangible objects that are produced and consumed
What is a service? definition
Intangible services offered by a company
Define ‘Needs’ with an example
Goods/Services that we consume if we are live
E.g. Food, House
Define ‘Wants’ with an example
Goods/Services that we would like but dont need to consume to survive
E.g. Holidays, Smartphones
Define ‘Enterprise’
Another name for a business
What is an entrepreneur?
Someone who sets up a business and takes calculated risks for financial gain.
Give a way risks can be minimised
- carrying out market research to find out what customers want
- writing a business plan to identify potential problems
- ensuring that there is sufficient money available
Give the rewards of starting a business
- Profit
- Business success
- Independance
What does adding value mean?
The difference between the selling price and the cost price of a good or service.
Give different methods of adding value
- Convinience
- Branding
- Quality
- Design
- USP (unique selling point)
Define ‘Unique Selling Point(USP)’
A specific and clear benefit that makes your business stand out when compared to other businesses in your market
What are customer needs? List them
- Good customer service
- Good quality of products
- Conveinience
- Reasonable prices
- Choice
What are different ways a business can add value?
- Build a strong brand
- Offer a unique selling point
- Deliver excellent customer service
- Add product features and benefits
that customers want
e.g. convenience - Provide a high-quality product
- Produce a well-designed product
