1.1: Enterprise and entrepreneurship Flashcards
How can changes in technology improve products and services?
faster
cheaper
smaller
easier to use
safer
What causes customer needs to change?
fashion
economy
national demographics
lifestyle
technology
What causes a product or service to become obsolete?
new technology and changing customer needs
What is planned obsolescence?
when products are designed to last a short time and consumers are encouraged to buy new improved versions of these products
In which ways can new business ideas be generated?
invention
innovation
What are some risks of starting a business?
business failure
financial loss
lack of security
What are some rewards of starting a business?
business success
profit
independence
How can risk be reduced?
market research
business plan
ensuring business is competitive
raise sufficient start-up finance
Why are some businesses more risky than others?
seasonal demand
small market
highly competitive market
ignorant owner
What is a business/enterprise?
a person or organisation with the purpose of producing goods and services to meet the needs of customers
What is a supplier?
a business that sells/supplies products to another business
What is production?
using raw materials, labour and machinery to make products
What is a customer?
a person or organisation that buys the product or service
What is a consumer?
the person that uses the product
What is the purpose of all products and services?
to meet the needs of customers, often to make a profit
