Business activity

Question 1

Enterprise

Answer 1

Spotting an opportunity to provide a product or service that people are willing to buy

Question 2

Characteristics of an entrepreneur

Answer 2

. Risk taking
. Self made
. Creative
. Confident
. Adaptable
. Ambitious
. Uses their initiative

Question 3

Entrepreneur

Answer 3

An individual who has skills and knowledge to set up and run their own business, and is willing to take risks

Question 4

Risks

Answer 4

. Financial loss - lose investment
. Business failure
. Lack of security - regular income
. Mental health strains

Question 5

Reward

Answer 5

. Profit
. Business success
. Independence
. Self satisfaction

Question 6

Minimise the risks

Answer 6

. Carry out market research
. Business plan
. Make sure there is sufficient funds

Question 7

Product

Answer 7

Tangible that can be used and stored
E.g grocery shop, sports store

Question 8

Services

Answer 8

Intangible actions that can’t be stored but physically done e.g hairdressing, taxi service

Question 9

Invention

Answer 9

Creating something that didn’t originally exist. Creates a unique selling point

Question 10

Innovation

Answer 10

The successful commercialisation of a invention or product

Question 11

Business plan

Answer 11

A business plan is a document created by a business or entrepreneur that provides details about each element of the business

Question 12

Business purpose

Answer 12

. Helps identify a target market to sell to
. Sources of finance - loans
. Figure out resources a business needs to operate to achieve its aims
. Project costs and profits
. Location
. 4 Ps (place, promotion, price, product)
. Cash flow forecast