Enterprise and entrepreneurship

Question 1

what are the different types of risk?

Answer 1

financial loss- risk losing money and fail to pay loans
lack of security - lose security of regular income and sacrifice holidays

Question 2

How can late payments affect a business?

Answer 2

Late payments can make it difficult for a business to buy supplies or pay employees

Question 3

What is a common cause of business failure?

Answer 3

A common cause is poor cash flow.

Question 4

What are three ways entrepreneurs can minimise risks?

Answer 4

Conducting market research, writing a business plan, and ensuring they have enough money to cover expenses

Question 5

Why is market research important for reducing risks?

Answer 5

It helps entrepreneurs understand customer needs and demand, reducing the chance of failure.

Question 6

How can writing a business plan help an entrepreneur?

Answer 6

It identifies potential challenges and prepares strategies to handle them

Question 7

What sacrifices might entrepreneurs make when starting a business?

Answer 7

They may lose job security, work long hours, and take fewer holidays.

Question 8

What are some examples of business success?

Answer 8

Growing the business, building a strong reputation, winning awards, or becoming a well-known entrepreneur

Question 9

What are the three main rewards of starting a business?

Answer 9

Profit, business success, and independence.

Question 9

Why is making profit important for entrepreneurs?

Answer 9

Profits can be reinvested to help the business grow and survive, and entrepreneurs may earn more than in traditional employment.

Question 10

Why might independence be a reward for entrepreneurs?

Answer 10

It allows them to make their own decisions, pursue their interests, and control their working hours.

Question 11

Why do many entrepreneurs feel the risks of starting a business are worthwhile?

Answer 11

Because the potential rewards, such as profit, success, and independence, can outweigh the risks.

Question 12

How can profits benefit the growth of a business?

Answer 12

Profits can be reinvested to support and expand the business.

Question 13

What is adaptation in business?

Answer 13

Adaptation is modifying a product or service to suit different customers or changing demands

Question 14

Why is adaptation often less risky than creating a new product?

Answer 14

It involves improving existing products instead of starting from scratch, reducing the chance of failure.

Question 15

Give an example of adaptation in restaurants.

Answer 15

Adding more vegan options to meet changing customer tastes.

Question 16

What are some types of adaptation?

Answer 16

Brand updates, format changes, promotion strategies, and innovative modifications.

Question 17

What is an example of a brand update?

Answer 17

When a brand (like coca cola) refreshed its logo and packaging design

Question 18

How can format changes adapt a product?

Answer 18

By altering its form, style, or design, such as selling cereal as snack bars.

Question 19

What is an example of a promotion strategy adaptation?

Answer 19

Using social media, discount codes, or special offers to promote products.

Question 20

What is an example of an innovative modification?

Answer 20

Creating vegan sausage rolls to meet the demand for meat-free options.

Question 21

Why is adaptation important for businesses?

Answer 21

It helps them stay competitive and meet evolving customer needs.

Question 22

What does it mean when a product becomes obsolete?

Answer 22

It means the product is out of date and replaced by newer versions or entirely new products.

Question 23

What is the product life cycle?

Answer 23

It refers to the lifespan of a product, from launch to decline, after which it is often updated or replaced.

Question 24

Give an example of a product made obsolete by technology.

Answer 24

DVDs being replaced by streaming services.

Question 25

What is e-commerce?

Answer 25

E-commerce is buying and selling through the internet, such as businesses selling to customers (B2C), businesses selling to other businesses (B2B), or customers selling to each other (C2C).

Question 26

What is m-commerce, and how do businesses use it?

Answer 26

M-commerce involves transactions on mobile devices. Businesses use apps, mobile-friendly websites, and mobile payment systems.

Question 27

How does social media help businesses?

Answer 27

It connects businesses with customers, builds relationships, promotes brand awareness, and provides a platform for advertising and promotions.

Question 28

What is an example of a demographic trend affecting businesses?

Answer 28

An ageing population creating demand for products tailored to older consumers.

Question 29

Why do businesses need to adapt to consumer preferences

Answer 29

To stay competitive and relevant by meeting evolving needs and trends, like offering eco-friendly or vegan products.

Question 30

What role does technology play in keeping businesses competitive?

Answer 30

Technology drives innovation, helps update outdated products, and supports new ways to connect with customers, like e-commerce and m-commerce.

Question 31

What are some examples of changes in consumer preferences?

Answer 31

Zero-waste supermarkets, vegan products, and fast-food delivery services.

Question 32

What is the primary goal of a successful business?

Answer 32

To meet customer needs by producing goods or providing services while making a profit.

Question 33

What are goods, and can you provide examples?

Answer 33

Goods are tangible items that can be stored and owned by customers. Examples include computers, food, and clothes

Question 34

What are services, and how are they different from goods?

Answer 34

Services are intangible actions that cannot be stored and are used for a set time, such as hairdressing, train journeys, or internet access. Unlike goods, they are not owned by customers.

Question 35

What is the role of an entrepreneur in a business?

Answer 35

Entrepreneurs organize resources, take risks, and make decisions to produce goods or services that meet customer needs.

Question 36

What are the four key resources needed by an entrepreneur to start a business?

Answer 36

Land: Natural resources, such as land and water.
Labour: Human effort, skills, and knowledge.
Capital: Money and equipment to produce goods or services.
Enterprise: Willingness to take risks and make decisions.

Question 37

What is enterprise, and why is it essential for entrepreneurs?

Answer 37

Enterprise is the ability to take risks and make decisions to organize resources effectively. It’s essential because it drives the creation and success of the business

Question 38

Why is it important for businesses to provide what customers need or want?

Answer 38

It helps businesses survive and make a profit by meeting customer preferences and expectations.

Question 39

What are needs, and can you provide examples?

Answer 39

Needs are essential for survival, such as clothing, food, shelter, warmth, and water.

Question 40

What are wants, and how do they differ from needs?

Answer 40

Wants are non-essential items that people desire, such as event tickets, holidays, and mobile phones, unlike needs, which are essential for survival.

Question 41

Why is understanding customer needs and wants important for a business?

Answer 41

It helps businesses cater effectively to their customers, improving customer satisfaction and increasing profitability.

Question 42

What is added value?

Answer 42

Added value is the difference between the selling price and the cost price of a good or service.

Question 43

Why is adding value important for a business?

Answer 43

It makes products more appealing, allowing businesses to charge higher prices and increase profits.

Question 44

What are some key ways businesses can add value to their products?

Answer 44

convenience: Making products easier to use (e.g., ready-prepared food).
Branding: Building trust and recognition (e.g., a well-known ready-meals brand).
Quality: Using higher-quality materials or ingredients (e.g., organic vegetables).
Design: Improving features or presentation (e.g., attractive packaging).
Unique Selling Point (USP): Differentiating from competitors (e.g., sourcing locally for environmental benefits).

Question 45

What is a USP, and why is it important?

Answer 45

A USP (Unique Selling Point) is a feature that makes a product stand out from competitors, making it more attractive to customers.