1.1 Enterprise and entrepreneurship Flashcards
Innovation
The adapting of an existing product or service to keep up with changes with customer trends.
Invention
Creating a completely original product or service to satisfy a new or previously unknown customer trend.
Example of invention
- Car
- Aeroplane
- Internet
Example of innovation
- phones
- sticky notes
- paper
Patents
Stops rivals from copying ideas for set number of years
Copyright
Copyright automatically arises for authors creating books, films, music or games
Trademark
A symbol or phrase that its company can register with the government to make their company distinctive
Risks of business
- Failure
- Financial loss
- Lack of security
Rewards of business
- Business success
- Profit
- Independence
Calculated risk
Putting a numerical value or probability on risk
Risk
The downside of a course of action including what can go wrong
Reward
Advantages of a course of action including what can go right
Good (product)
Physical items that businesses produce to sell to customers
Service
Non-physical items provided by businesses
Customer needs
The things that are essential for customers and are difficult to live without
Customer wants
Non-essential products that customers desire rather than need.
Customer
A person or business to whom goods and services are sold.
Consumer
The person who uses the products or service
Demand
The quantity customers are willing to buy at any given price
Technology changes
Improvements in technology that allow new products to be developed
Loss
When a business is unable to generate enough revenue to cover all its costs. This may lead to business failure.
Inputs
The resources - such as labour, capital, land, and enterprise. These are needed to create outputs
Outputs
The goods, services, and ideas that result from the conversion of inputs.
USP
Something that makes the product or service stand out from the competition
