1.1 - Enterprise and Entrepreneurship

Question 1

What is business enterprise?

Answer 1

The process of identifying new business opportunities, and then taking advantage of them.

Question 2

What can business enterprise involve?

Answer 2

Starting a new business or helping an existing one to expand by coming up with new ideas.

Question 3

What are the 3 purposes of a business activity?

Answer 3

1. Provide people with a good or service
2. Meet customer needs
3. Add value to an existing product

Question 4

How can a business add value?

Answer 4

1. More convenient
2. Improve brand image
3. Improve design or quality
4. Create a USP

Question 5

Why do new business ideas come about?

Answer 5

• changes in technology
• changes in customers wants
• products becoming obsolete

Question 6

What are the two ways new business ideas come about?

Answer 6

Adapt an existing product.
Create a new product.

Question 7

What is an entrepreneur?

Answer 7

Someone who takes on the risks of enterprise activity.

Question 8

What does an entrepreneur need to do to successfully run a new business?

Answer 8

• organise resources
• take risks
• make business decisions

Question 9

What are the risks for an entrepreneur when running a business?

Answer 9

1. Losing money, if the business makes a financial loss the entrepreneur may lose their own money.
2. Lack of security.
3. Business failure, money, time and effort lost.

Question 10

What are the rewards for an entrepreneur when running a business?

Answer 10

1. Business success.
2. May earn money - better quality of life.
3. Independence.