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

What is the difference between a good and a service?

A

A good is a physical tanglible product (you can touch it) whereas a service is when something is done for someone.

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

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
3
Q

What is the role of an entrepreneur/entreprenuership?

A
  • Organise resources such as land, labour and capital (equipment)
  • Make business desicions
  • Take risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the three roles 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
5
Q

Idenitfy three reasons 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
6
Q

What does it mean if a product is obsolete?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It is outdated and no longer in use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
7
Q

Identify two ways new business ideas come about?

A
  • Original ideas
  • Adapting existing concepts/products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How can 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
9
Q

What is added value and how is it calculated?

A

The difference between what a business pays its suppliers and the price it charges its customers. It is calculated as the sale price - the cost of producing the product.

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

What are the rewards for entreprenuers when starting a business?

A
  • Business success
  • Profit
  • Independence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are three risks that an entreprenuer takes when starting a business?

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