1.1 enterprise & entrepeneurship

Question 1

How do new business ideas come about (2 ways)

Answer 1

invention (original), innovation (adapting existing ideas)

Question 2

explain 3 reasons why new business ideas come about

Answer 2

changes of technology, changes in consumer wants, products becoming obsolete

Question 3

explain the main risks of a business

Answer 3

business failure, financial loss, lack of security

Question 4

explain the main rewards a business achieves

Answer 4

business success, profit/financial gain, control, growth opportunities

Question 5

why do businesses exist (3)

Answer 5

to provide goods and services, to meet customer needs, add value (justify given price (quality))

Question 6

define entrepreneur

Answer 6

a person who starts a business and is willing to take financial risks to make a profit

Question 7

what entrepreneurs do, what are their roles

Answer 7

someone who demonstrates enterprise. Making decisions, taking risks, organising resources