Booklet 1 : Enterprise and Entreprenuership

Question 1

What is an Enterprise? (1)

Answer 1

The process by which a business is formed in order to offer products or services to a market (1)

Question 2

Name all 4 factors of production? (4) - CELL

Answer 2

Capital - machinery, equipment, technology and money (1)

Enterprise - refers to the act of bringing together all factors of production in order to create goods and services by using the other three factors (1)

Land - all natural resources which are used for the production of goods and services e.g farmland for crops, the sea for fishing or quarries for mining (1)

Labour - refers to the HR involved in the production of goods or services, it is the physical or mental effort put into production e.g employees (1)

Question 3

Name 4 motives to become an entrepreneur (4)

Answer 3

Make money (1)

Create their own job and be the decision maker (1)

More control over work-life balance (1)

Need for a flexible working schedule (1)

Question 4

Name 4 entrepreneurial characteristics (4)

Answer 4

Hard work and determination - without dedication the business may not survive (1)

Risk taker - an entrepreneur must be able to take calculated risks to seek additional profit (1)

Vision - the entrepreneur has a vision of what they want their company to be so that they are motivated to achieve their vision (1)

Good decision maker - they have to be able to evaluate and make decisions in order to ensure the business’ survival (1)