1.1.3 The Role of Business Enterprise

Question 1

What do business do

Answer 1

-Produce Goods and Services
-Meet the needs of Customers
-They also Add Value

Question 2

How do Business add value

Answer 2

-loyal-Brand
Unique selling point (USP)
-Quality
-Designing
-and Convenience

Question 3

What do entrepreneurs (the person running the business)

Answer 3

-Take Risks
-Make Business Decision
-Organise resources

Question 4

The Role Of Business Enterprise and The Purpose Of Business Activity (3 Marker)

Answer 4

The role of business enterprise is to meet customer needs (P) This is because meeting customer needs leads to higher levels of customer satisfaction (S) As a result customers are more likely to return to the business and purchase again (S) Therefore the business will see higher sales revenue (S)

Question 5

The Role Of Business Enterprise and The Purpose Of Business Activity - Added Value (Branding)
(6 Marker)

Answer 5

The benefit of having a strong band is customer loyalty (P) This is because customers recognise the business and its products and services (S) This leads to be the business being able to charge a high price (S) Therefore the business will receive a high levels of revenue (S) As a result their break-even point should be lower as more money is contributing to fixed costs (S) This will lead to them making profit quicker (S)

Question 6

The Role Of Business Enterprise (3 Marker)

Answer 6

One role of enterprise is to make business decisions (P) This is because they are incharge of everything from opening hours to what the business sells (S) This can lead to high levels of motivation (S) As a result the business is more likely to be successful (S)