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

organises resources, makes business decisions, takes risks

Question 3

What are the four things that are needed to produce goods and services?

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 are the 7 most common and basic expectations customers have?

Answer 4

Fast, efficient and accurate service
High quality products at a competitive price
Friendly, helpful service staff to provide information and answer questions
Prompt responses to their inquiries, whether online, by phone or in person
Sufficient stock to meet their needs without long waits
A trained staff that can handle their questions without referring them on
A clean shop or easy to navigate website

Question 5

What is added value?

Answer 5

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

Question 6

What are 5 different ways to add value?

Answer 6

branding
design
unique selling point (usp)
quality
convenience

Question 7

what is Enterprise?

Answer 7

about taking risks, being creative and innovative and using your initiative

Question 8

What is an entrepreneur?

Answer 8

An entrepreneur develops a business idea and then hires and organises the factors of production to carry out the business activity