1.1.3 The role of business enterprise

Question 1

What is the role of business enterprise and the purpose of business activity?

Answer 1

• To produce goods or services
• To meet customer needs
• To add value: convenience, branding, quality, design, unique selling points

Question 2

What is the role of entrepreneurship?

Answer 2

An entrepreneur: organises resources, makes business decisions, takes risks

Question 3

To produce goods and services, what 4 things are needed?

Answer 3

Land – somewhere to produce the goods e.g. a farm
Labour – people to work in the business e.g. farm workers
Capital – money to get the business started
Enterprise – This is the drive or motivation from the owners to start a business

Question 4

What does added value mean?

Answer 4

the difference between what a business pays its suppliers, and the price it is able to charge for its product or service

Question 5

What can add value?

Answer 5

Branding, Unique selling point, Design, Quality and convenience

Question 6

What is Enterprise about?

Answer 6

taking risks, being creative and innovative and using your initiative

Question 7

What does and entrepreneur do?

Answer 7

develops a business idea and then hires and organizes the factors of production to carry out the business activity