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
Q

1.1.1 - What is the difference between a good and a serivice?

A

A good is a physical tanglible product (you can touch it)

A service is an experince that is intagible (can’t touch it)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

1.1.1 - What is the difference between a consumer and a customer?

A

A customer purchases the product and the consumer uses the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

1.1.1 - For what three reasons do new business ideas come about?

A
  • Changes in technology
  • Changes in consumer needs
  • A product becoming obsolete
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

1.1.1 - What does it mean if a product is obsolete?

A

It is outdated and no longer in use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

1.1.1 - What are payment platforms?

A

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.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

1.1.1 - What is an entrepreneur?

A

Someone who creates a business, taking on
financial risks with the aim of making a profit from the
business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

1.1.1 - In what two ways do new business ideas come about?

A
  • Original ideas

- Adapting existing concepts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

1.1.2 - What are three risks that start-ups face?

A
  • Business failure
  • Lack of (financial) security
  • Finacial loss
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

1.1.2 - What is the difference between variable and fixed cost?

A
  • 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)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

1.1.2 - How do you work out variable cost?

A

Cost per unit x sales volume

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

1.1.2 - What are financial rewards for a start-up?

A
  • Survival
  • Profit
  • Wealth
  • Income
  • Financial Security
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

1.1.2 - What are non-financial rewards for a start-up?

A
  • Personal Satisfaction
  • Challenge
  • Independence
  • Control
  • Helping Others
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

1.1.3 - What is a stakeholder?

A

Any person with interest in the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

1.1.3 - What are the thee purposes of business enterprise?

A
  • To meet customer needs
  • To add value
  • To provide goods and services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

1.1.3 - How may a business add value?

A
  • Convenience
  • Quality
  • Branding
  • Design
  • USP
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

1.1.3 - What are the roles of an entrepreneur?

A
  • Organise resources
  • Make business desicions
  • Take risks