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
What is the difference between a good and a service?
A good is a physical tanglible product (you can touch it) whereas a service is when something is done for someone.
What is an entrepreneur?
Someone who creates a business, taking on financial risks with the aim of making a profit from the business.
What is the role of an entrepreneur/entrepreneurship?
- Organise resources such as land, labour and capital (equipment) and enterprise
- Make business decisions
- Take risks
What are the three roles of business enterprise?
- To meet customer needs
- To add value
- To provide goods and services
Idenitfy three reasons new business ideas come about?
- Changes in technology
- Changes in consumer needs
- A product becoming obsolete
What does it mean if a product is obsolete?
It is outdated and no longer in use
Identify two ways new business ideas come about?
- Original ideas
- Adapting existing concepts/products
What is added value and how is it calculated?
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 can a business add value?
- Convenience
- Quality
- Branding
- Design
- USP
What are the rewards for entreprenuers when starting a business?
- Business success
- Profit
- Independence
What are three risks that an entreprenuer takes when starting a business?
- Business failure
- Lack of (financial) security
- Financial loss
