definitions 1.1

Question 1

adapting existing products def

Answer 1

finding new products based on the original one

Question 2

Dynamic nature of the business def

Answer 2

the idea that business is ever changing because external factors, such as tech, are always changing

Question 3

business failure def

Answer 3

the collapse of a business probably leading to it’s closure

Question 4

lack of financial security def

Answer 4

uncertainty for the business owner about day to day family income

Question 5

risk and reward def

Answer 5

the balance between the worst that can happen and the best that can happen

Question 6

independence def

Answer 6

the need by many business owners to make their own decisions and be their own boss

Question 7

usp def

Answer 7

an original feature of a product that rivals aren’t offering

Question 8

branding def

Answer 8

giving a product or service personality with a name and logo

Question 9

risk taking def

Answer 9

making decisions where unknown factors or chances of failure loom large in the decision makers mind

Question 10

resources def

Answer 10

things or people that can be used to help build and run the business

Question 11

human resources def

Answer 11

a term used by organisations that simply means employees

Question 12

business decisions def

Answer 12

choices that have to be made usually within a short time period

Question 13

entrepreneurs def

Answer 13

business people who see opportunities and are willing to take risks in making them happen

Question 14

demand def

Answer 14

the number of units that customers want

Question 15

original ideas def

Answer 15

ideas that have not been done before

Question 16

competitive advantage def

Answer 16

a feature of a business that helps it to succeed against rivals

Question 17

goods def

Answer 17

products that may be fresh

Question 18

services def

Answer 18

providing useful ways to help people live their lives

Question 19

customer wants def

Answer 19

what people chose to spend their money on, once the weekly bills have been paid

Question 20

customer needs def

Answer 20

the products or services people need to make life comfortable

Question 21

added value def

Answer 21

the difference between the selling price and the cost of bought in goods

Question 22

obsolete def

Answer 22

the product is no longer used because it is outdated or has been replaced