1.1.1- enterprise and entrepreneurship

Question 1

What is an enterprise?

Answer 1

A business or a company

Question 2

Who is an entrepreneur?

Answer 2

Someone who creates a business

Question 3

What’s a business enterprise?

Answer 3

The activity of providing goods and services involving financial and commercial aspects

Question 4

Consumer

Answer 4

Someone who buys/uses goods and services

Question 5

Obsolete

Answer 5

Out of date

Question 6

Planned obsolete

Answer 6

The business have made a product to last a short amount of time

Question 7

What the difference between goods and services?

Answer 7

Good’s = they can be touched (tangible)
Services = intangible

Question 8

Characteristics of an entrepreneur are?

Answer 8

-hard working
-smart
-innovative

Question 9

Skills of an entrepreneur are?

Answer 9

-communication
-numeracy
-problem solving

Question 10

Steps in order to have a business:

Answer 10

-generating an idea
-asking how the idea could have added value
-conducting market research
-drawing a business plan
-deciding on legal structure
-raising finances

Question 11

How do new business ideas come about?

Answer 11

-changes in technology
-changes in consumer wants
-product becomes obsolete

Question 12

Why do new business ideas come about?

Answer 12

-original ideas
-advancing an excising product

Question 13

What can make a product become obsolete?

Answer 13

-changes in trends
-changes in technology
-changes in economy

Question 14

How could a business use inventions?

Answer 14

This means the use an existing product and adapt it to make it better this means the business will be unique and avoid competitors

Question 15

How could a business use innovations?

Answer 15

They make a new product that’s not on the market which will lead to the business having a product that no other competitors have.

Question 16

Why would someone set up a business?

Answer 16

Financial motives-profit is the driving force of an entrepreneur setting up a business
Non-financial motives-they think they are capable of earning from the business

Question 17

What risks does an entrepreneur take?

Answer 17

-financial debt
-business failure

Question 18

What’s meant by adding value?

Answer 18

The additional features added to a product or service before offering them to costumers

Question 19

How can u add value to a product?

Answer 19

-convenience
-branding
-quality
-unique selling point

Question 20

What’s the benefit of adding value to a product?

Answer 20

When a good or service is made appealing to costumers, they will usually be more willing to pay more for the product or service which increases the amount of profit a business can make

Question 21

What is market research?

Answer 21

The process of evaluating the valiability of a new product or services though conducting research

Question 22

Why is market research important?

Answer 22

It allows a company to define its target market and get feedback from consumers about their interest in a product or services

Question 23

What does finding a gap in the market mean?

Answer 23

When u have identified something costumers need that isn’t already on the market doesn’t exist

Question 24

Why is finding a gap in the market good?

Answer 24

Presents businesses with opportunities to innovate and expand their reach

Question 25

What’s primary research?

Answer 25

First handed research

Question 26

Example of primary research:

Answer 26

-focus group -questionnaires -interview -survey

Question 27

What are advantages of primary research?

Answer 27

-the information is up to date -no one has access to it -easy and quick to obtain

Question 28

What are disadvantages of primary research?

Answer 28

-expensive -time consuming -biased data

Question 29

What’s secondary research?

Answer 29

Using research that already exists

Question 30

Example of secondary research:

Answer 30

-magazine -report -articles -books

Question 31

What are disadvantages of secondary research?

Answer 31

-less exploratory (not as unique) -may be obsolete

Question 32

What are advantages of secondary research?

Answer 32

-low cost -easy to access -increase breadth of knowledge -less time consuming

Question 33

What’s quantitive research?

Answer 33

Focuses on numeric data and unchanging data

Question 34

Example of quantitive research:

Answer 34

-survey research -descriptive research -experimental research

Question 35

Advantages of quantitive research:

Answer 35

-fast -focused -scientific -relatable

Question 36

Disadvantages of quantitive research?

Answer 36

-less detailed pictures -not good at capturing feelings of the costumer

Question 37

What’s qualitative research?

Answer 37

Peoples opinions and motivations

Question 38

Example of qualitative research:

Answer 38

Product managers use this to find out more about what customers want and need

Question 39

Advantages and disadvantages of qualitative research:

Answer 39

-a deeper understanding on consumer needs -feelings and opinions Disadvantage: -time consuming -cant be shown on a graph

Question 40

What is an entrepreneur personally liable for?

Answer 40

The debts of the failed business

Question 41

Why is it important for some start up businesses to select private limited companies?

Answer 41

If they don’t they take the risk that if the business fails the entrepreneur will lose all their investment and will be stuck in debt to the bank

Question 42

What causes there to be a risk of business failures?

Answer 42

-poor management -poor market research -start up costs are too high -unexpected changes

Question 43

How can a new business reduce the risk of business failure?

Answer 43

-finance with care- when an entrepreneurs own savings shares and retained profits are safer that Holland as the sources of finance don’t need to be paid back -keep costs down -advertising

Question 44

List three costumer needs:

Answer 44

-convenience -offers the quality expected -right product/service

Question 45

What’s meant by sampling in a market?

Answer 45

When market researches aim for 95 percent confidence in the results meaning that the data is correct 19 times out of 20

Question 46

What’s a sample?

Answer 46

A group of respondents who are selected to be representatives of a new product

Question 47

Advantages of samples:

Answer 47

-saves money -lack of bias -efficient -not time consuming

Question 48

Disadvantages of samples:

Answer 48

-if the sampling frame is large random sampling may be to impractical -bias -not large enough to get the whole populations data