Enterprise

Question 1

What is a business?

Answer 1

A business is an organisation that exists to ensure a product or service meets customer demand, whether that be to make a profit or help a cause.

Question 2

What gives a product added value?

Answer 2

1) Being branded
2) Having a unique selling point
3) The quality and design
4) Convenience

Question 3

What are the factors of production?

Answer 3

Things needed for the business to run and be successful

Question 4

What is the acronym used to remember factors of production?

Answer 4

c = capital/cash
e = enterprise
l = labour
l = location

Question 5

What is the primary business sector?

Answer 5

Extraction of raw materials

Question 6

Exemplify two primary sector jobs.

Answer 6

Farming and fishing

Question 7

What is the secondary business sector?

Answer 7

Assembling of raw materials

Question 8

Exemplify two secondary sector jobs.

Answer 8

Factories and manufacturing

Question 9

What is the tertiary business sector?

Answer 9

Commercial sector

Question 10

Exemplify two tertiary sector jobs.

Answer 10

Car dealership and clothing store

Question 11

What is organic business growth?

Answer 11

Internal e.g. sales increase

Question 12

What is artificial business growth?

Answer 12

External e.g. takeover or merger

Question 13

What defines a business as small, medium or large?

Answer 13

Small = 10-49 employees, < £10m turnover
Medium = 50-250 employees, < £250m turnover
Large = 250 + employees, £250m + turnover

Question 14

What is an aim?

Answer 14

A general goal that a business strives towards over a long period of time using the objectives they set for themselves.

Question 15

What is an objective?

Answer 15

A more specific target in comparison to the aim and contributes towards the overall success of the business by focusing on smaller successes first.

Question 16

Using the acronym SMART, what makes a good objective?

Answer 16

Specific, measurable, achievable, relevant and time effective.

Question 17

What 5 subjects are the objectives usually regarding?

Answer 17

1) Profit
2) Growth
3) Survival
4) Cash-flow
5) Ethics

Question 18

What are the internal and therefore controllable factors of a business?

Answer 18

(FMOP) : Finance, Marketing, Operations, Productions

Question 19

What are the external and therefore uncontrollable factors of a business?

Answer 19

PESTLE

Question 20

What are the events that occur due to an economic recession?

Answer 20

Unemployment and therefore crime increases. GDP decreases.

Question 21

Name 11 stakeholders.

Answer 21

Owner, customers, competition, employees, investors, suppliers, government, bank, local community, pressure groups and trade union.

Question 22

What does it mean to be risk averse?

Answer 22

Not taking risks as you fear failure.

Question 23

What is an opportunity cost?

Answer 23

The expense of choosing one option over another.

Question 24

What is an enterprise?

Answer 24

The process by which new businesses are formed and new services or products are brought to the market.

Question 25

What is an entrepreneur?

Answer 25

An individual with the idea or business.

Question 26

What 4 reasons would lead an entrepreneur to start their own business?

Answer 26

1) To be their own boss
2) To determine own wage
3) To fill a gap in the market
4) To turn a hobby into a lifestyle