1.1.1 The Dynamic Nature of Business

Question 1

Why do new business ideas come about

Answer 1

-Changes in Technology
-Changes in what consumers want
-Products and Services Becoming Obsolete

Question 2

What does Obsolete mean

Answer 2

-Obsolete Means that products become out of date and get replaced by new products

Question 3

How has new Business Ideas come about

Answer 3

• Original Ideas
• Adapting existing:Products,services and Ideas

Question 4

What does Consumers mean

Answer 4

• A Person who consumers (Uses) The Product and Service

Question 5

Why Do New Business Ideas Come About (3 Marker)

Answer 5

A New Business Idea May Come About Because Of Changes Of Technology (P) This Allows New Products To Be Created (S) Entrepreneurs Will Therefore Look To Create Demand For This New Product (S)

Question 6

How Do New Business Ideas Come About (6 Marker)

Answer 6

The business already understands the market (P) Market research may have already been carried out for a previous product (S) This may lead to the business having a better
understanding of customer needs (S) Therefore customers satisfaction levels are likely to be high (S)