1.1.3 the role of business enterprise

Question 1

what 4 thing are needed to produce goods and services?

Answer 1

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 2

name 5 basic expectations customers have

Answer 2

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 3

what is added value?

Answer 3

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

Question 4

What are the 5 ways to add value?

Answer 4

Design

USP

Quality

Branding

Convenience

Question 5

what risks does an entrepreneur take?

Answer 5

Setting up a
business is risky, money has
to be paid out in advance to
buy materials, equipment
and wages

There is no guarantee that
the final product or service
will be sold

The entrepreneur bears all
cost of the business fails

If an entrepreneur gives up a
regular job they will also lose
that income and have to
depend on the business to
pay their bills