1.1 - Enterprise and entrepreneurship Flashcards
1.1.1 -The dynamic nature of business 1.1.2 - Risk and Reward 1.1.3 - The role of business enterprise
1.1.1 - What is the difference between a good and a serivice?
A good is a physical tanglible product (you can touch it)
A service is an experince that is intagible (can’t touch it)
1.1.1 - What is the difference between a consumer and a customer?
A customer purchases the product and the consumer uses the product
1.1.1 - For what three reasons do new business ideas come about?
- Changes in technology
- Changes in consumer needs
- A product becoming obsolete
1.1.1 - What does it mean if a product is obsolete?
It is outdated and no longer in use
1.1.1 - What are payment platforms?
Enable businesses to take online payments from customers. They are usually free for the customer to use, but take a small amount of commission from
the seller and provide the customer with peace of mind.
1.1.1 - What is an entrepreneur?
Someone who creates a business, taking on
financial risks with the aim of making a profit from the
business.
1.1.1 - In what two ways do new business ideas come about?
- Original ideas
- Adapting existing concepts
1.1.2 - What are three risks that start-ups face?
- Business failure
- Lack of (financial) security
- Finacial loss
1.1.2 - What is the difference between variable and fixed cost?
- Variable costs are costs that depend on the amount of products you manufacture (e.g. Raw materials)
- Fixed costs (overheads) are costs that remain no matter your production rate (e.g. Rent)
1.1.2 - How do you work out variable cost?
Cost per unit x sales volume
1.1.2 - What are financial rewards for a start-up?
- Survival
- Profit
- Wealth
- Income
- Financial Security
1.1.2 - What are non-financial rewards for a start-up?
- Personal Satisfaction
- Challenge
- Independence
- Control
- Helping Others
1.1.3 - What is a stakeholder?
Any person with interest in the business
1.1.3 - What are the thee purposes of business enterprise?
- To meet customer needs
- To add value
- To provide goods and services
1.1.3 - How may a business add value?
- Convenience
- Quality
- Branding
- Design
- USP