1.1.3 The role of a business enterprise

Question 1

What are the characteristics of an entrepreneur? (only need to know a few)

Answer 1

Turn an idea into an operation
Curiosity
Willing to experiment
Adaptability
Dicisiveness
Self-awareness
Risk tolerance
Comfortable with the idea of failure
Persistance
Innovative thinking
Long-term focus

Question 2

What is the purpose of a business?

Answer 2

To provide goods and services
To meet customer needs
To add value

Question 3

What do goods and services mean?

Answer 3

Goods are tangible - you can touch it (physical object)
Services are intangible - you can’t physically touch it

Question 4

What is demand?

Answer 4

When products and services ecist solely to suit customer needs and that customers are prepared topay for them

Question 5

What does it mean to add value?

Answer 5

Added value is the increased worth that you business creates for a product

Question 6

What are the different ways to add value to products/ services in the business?

Answer 6

Have a good design
Be convenient and speed
Brand reputation
Quality products
USP (Unique selling point)
Aesthetic
Packaging
Celebrity influence

Question 7

Why does adding value matter?

Answer 7

Creates more demand Differenciates your product from competitors
Increases customer loyalty