1.1.1 The Dynamic Nature of Business

Question 1

Dynamic nature of business:

Answer 1

the idea that
business is ever-changing because external
factors, such as technology, are always changing.

Question 2

Venture capital

Answer 2

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

Question 3

Demand

Answer 3

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

Question 4

Entrepreneurs

Answer 4

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

Question 5

Obsolete:

Answer 5

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

Question 6

Adapting existing products:

Answer 6

finding new products based on the original one,

Question 7

Competitive advantage:

Answer 7

a feature of a business that helps it to succeed against rivals.