ar1 revision: key words (1.1.1 - 1.1.3)

Question 1

Obsolete

Answer 1

Out of date/no longer in use.
Examples include CDs, DVDs, etc.

Question 2

Entreprenur

Answer 2

Someone who creates a business/enterprise with the aim of making a profit whilst taking a financial risk.

Question 3

Intrapreneur

Answer 3

Someone who creates an enterprise while also working a job that pays a regular salary.

Question 4

Consumer

Answer 4

Someone who uses products/services.

Question 5

Customer

Answer 5

Someone who buys products/services.

Question 6

Demand

Answer 6

The number of units customers want and can afford to buy.

Question 7

USP (Unique Selling Point)

Answer 7

An original feature of a product making it stand out from other competitors.

Question 8

Original ideas

Answer 8

Ideas that have never been done before.

Question 9

Investment

Answer 9

Putting money into a business.

Question 10

Capital

Answer 10

Money a company needs to function and expand.

Question 11

Factors of production (resources necessary for an enterprise):

Answer 11

Land
Labour
Capital
Entrepreneurship

Question 12

Competitive advantage

Answer 12

A feature of a business helping it to succeed against rivals.

Question 13

Dynamic nature of business

Answer 13

The idea that business is constantly evolving and changing because of external factors such as technology.

Question 14

Resources

Answer 14

Things/people that can be used to help build/run a business.

Question 15

Sales revenue

Answer 15

The amount of money that come in from a business’ sales.

Question 16

Market research

Answer 16

The process of gathering information about the market and customer needs/wants to aid business/financial decisions.

Secondary = cheaper, less reliable and isn’t as personalised to the company (good for start-ups aiming to get a business loan).

Question 17

Risk

Answer 17

The possibility that the entrepreneur will have lower than anticipated revenue.

Question 18

Adding value

Answer 18

Selling at price higher than the cost through branding, design, quality, convenience and USPs.

Question 19

Ways to add value

Answer 19

Convenience
Choice
Branding
Quality
Design
USP