business enterprise

Question 1

the purpose of business activity and enterprise

Answer 1

spotting an opportunity, developing an idea for a business and satisfying the needs of customers.
NEEDS: things that customers need; food, water, sanitary products
WANTS; things that customers want; luxury items, electronics

Question 2

characteristics of an entrepreneur

Answer 2

risk-taking, confidence, motivation, good people skills, creativity, determination

Question 3

the concept of risk and reward:

Risk

Answer 3

RISK: the chance that the business might not turn out good. you might lose everything. lose all your money. business could fail. could possibly have debts

Question 4

the concept of risk and reward:

Reward

Answer 4

REWARD: your business could end up doing well resulting in profit. could receive dividends and the business may have capital growth. a sense of satisfaction and would be in control

Question 5

business planning

Answer 5

A business plan is a written document that describes a business, its objectives, its strategies, and its financial situation.

The business plan has many functions:
The plan provides a logical structure to thinking about the business,
It encourages the entrepreneur to focus on what the business is really about and how customers and finance-providers can be convinced,
The plan provides something which can be used to measure actual performance
good for setting out objectives and aims for the business

Question 6

aims and objectives to a business

Answer 6

An aim or objective is a statement of what a business is trying to achieve over the next 12 months. For example, a business can set itself any of these targets:
survival
increased profit
growth
increasing market share