1.1.1 Dynamic nature of business

Question 1

Entrepreneurs:

Answer 1

business people who see
opportunities and are willing to take risks in
making them happen.

Question 2

Demand:

Answer 2

the number of units that customers
want – and can afford – to buy.

Question 3

Obsolete:

Answer 3

a product or service with sales that
have declined or come to an end as customers
fi nd something new.

Question 4

Adapting existing products:

Answer 4

finding new products based on the original one, such as Wall’s White
Chocolate Magnum.

Question 5

Independence:

Answer 5

the need by many business
owners to make their own decisions and be their
own boss.

Question 6

Lack of financial security:

Answer 6

uncertainty for the
business owner about day-to-day family income and assets

Question 7

Venture capital:

Answer 7

risk capital provided by an investor willing to take a risk in return for a share in any later profits; the venture capital
provider will take a share stake in the business.