1.1.3 - The Role of Business Enterprise

Question 1

What are the roles of business enterprise?

Answer 1

• To produce products and/or services
• To meet customer needs
• To add value

Question 2

What are the methods of adding value?

Answer 2

• Branding - adds the assurance of consistent quality
• Design - provides destinctiveness and noticeability
• Quality - allows for products to last longer and have a higher reliability
• Convenience - satisfies a customer need and makes purchase easier
• Unique Selling Point - differentiates itself from other competitors and can contribute to convenience, branding and design

Question 3

What is the role of an entrepreneur?

Answer 3

• Organises resources
• Makes business decisions
• Takes risks

Question 4

What are the types of resources?

Answer 4

• Capital - money, equipment and machinery
• Enterprise - ideas, creativeness, innovation
• Land - physical premises and natural resources
• Labour - people or human resources