1.1 The Role Of Business Enterprise And Entrepreneurship

Question 1

Identify three reasons why people choose to start their own business.

Answer 1

-spotting an opportunity
-developing an idea
-satisfying customer needs

Question 2

Give three examples of spotting an opportunity

Answer 2

-improving a product or service already provided.
-spotting a gap in the market.
-producing a product or service more cheaply.

Question 3

Give two examples of developing an idea

Answer 3

-designing the product or service.
-planning production.

Question 4

Give two examples of satisfying customer needs.

Answer 4

-producing the product or providing the service.
-marketing the product or service.

Question 5

Give an example of business needs.

Answer 5

-provides necessities for human survival.

Question 6

Give an example of business wants.

Answer 6

-provides luxury items.

Question 7

Identify four characteristics of a successful entrepreneur.

Answer 7

-risk taker
-determined
-confidence
-creative

Question 8

What are the Risks of starting your own business?

Answer 8

Financial- losing savings and other assets, can get into debt.

Non financial- mental and physical illness (stress).

Question 9

What are the Rewards of starting your own business?

Answer 9

Financial- potential to make a lot of money.
Non financial- independence, self- satisfaction, making a difference.