Enterprise

Question 1

Entrepreneur?

Answer 1

A person who has the idea for a new business, starts it and carries most of the risk and benefits from the rewards like profit.

Question 2

Customer?

Answer 2

An individual consumer or organisation that purchases goods or services from a business.

Question 3

Consumer?

Answer 3

A person who purchases goods or services for personal use.

Question 4

consumer goods?

Answer 4

Tangible goods sold to consumers with intention of not to resale, including durable such as cars and non durable such as food items.

Question 5

consumer services?

Answer 5

non-tangible products sold to consumer with no intention of resale such as hotel accommodation or insurance services.

Question 5

factors of production?

Answer 5

Resources needed by a business to produce goods or services such as:
Labor(service)
Capital(goods)
enterprise(services)
land(goods)

Question 6

capital good?

Answer 6

Goods which are responsible for the production of other good for example:
A ice cream machine produces ice cream.
In this case ice cream machine is capital good.

Question 7

Added value?

Answer 7

Difference between the cost used to buy goods materials and the selling price of finished goods.
For example:
You bought raw leather(material) for 100$ and then make a leather jacket(finished good) from it and marked a sale price of 300$ the difference between these both price is known as added value.

Question 8

Scarcity and opportunity cost?

Answer 8

limited resources, unlimited wants.
And when there is limited resources sometimes you need to choose between the two option and the option you leave is opportunity cost as it is the best next alternative.

Question 9

Dynamic business environment?

Answer 9

It consists of new competitors, legal changes, economic changes and technological changes.
This is a major cause of change within business as decision making by entrepreneur is more focused on the change in business environment.

Question 10

Business succeed?

Answer 10

1. understanding of customer need.
2. flexible decision making.
3. Efficient management.
4. Enough resources of finance.

Question 11

Business fail?

Answer 11

1. poor record keeping.
2. lack of cash
3. poor management skills.

Question 12

Difference between international and multinational business?

Answer 12

International means a business just selling products by the help of dealers in other countries, however in multinational the business have branches or operations in more than one country.

Question 13

intrapreneur

Answer 13

Business employee who takes direct responsibility for turning an idea into profitable new product or business venture.

Question 14

Quality of a successful entrepreneur

Answer 14

innovative, self motivated, multi skilled, leader, self confidence to bounce back and risk taker.

Question 15

Barriers to entrepreneurship

Answer 15

1. lack of business opportunity.
2. financial problem such as no statements of transactions or poor business plan.
3. cost of good location
4. competition
5. customer base like supplying a customer to whom market is reluctant to supply or personal customer.

Question 16

Business uncertainty

Answer 16

Events nearly impossible to calculate or measure which can affect business in negative way such as COVID-19.

Question 17

Role of enterprise in country economic growth

Answer 17

1. Innovation technological change.
2. exports
3. employment creation
4. increased social cohesion.
5. business growth and survival.
6. personal development
7. Economic growth.

Question 18

Business plan

Answer 18

It is written document which tells about a specific business. A good business plan leads to advantages such as forces owner to think about use of strengths and working on weaknesses as well ease in decision making and can encourage easily investors to invest if needed.

Question 19

Business plan limitations

Answer 19

Business plan should be detailed with market research and should be flexible to set up according to fresh opportunities.