Enterprise And Entrepreneurship

Question 1

Purposes of business activity (3)

Answer 1

-to produce goods and services
-to meet customer needs
-to add value(make a profit)

Question 2

Role of an entrepreneur

Answer 2

To set up a business to meet customer needs. They need to take risks, are decisions and organise resources

Question 3

Why do new business ideas come about? (3)

Answer 3

1) changes in customer preferences
-for instance vegan and diet foods
2)changes in technology
-online shopping
3)products becoming obsolete
-no longer needed like record stores

Question 4

How do new business ideas come about ?(2)

Answer 4

1) original ideas (invention)
2)adapting existing products/ideas/services (innovation)

Question 5

Types of business risk (3)

Answer 5

1)business failure
-poor cash-flow, fall in customer demand
2) financial loss
-insufficient funds
3)lack of security
-no sick or pension pay

Question 6

Business rewards (4)

Answer 6

1) profit
-ability to handle money and make better decisions
2)independence
-only work for yourself, you have freedom to make decisions
3) business success
-you earn a status and title
4)satisfaction
-enjoying job and being motivated

Question 7

How to add value? (5)

Answer 7

1)branding
-recognisable and communicates the value of the product
2) convenience
-when it saves customer time and effort
3) quality
-made to high standards
4)design
- updated with new features
5)unique selling point
-exclusive products (could be price, quality or unique)