Enterprise And Entrepreneurship

Question 1

What can New technology do?

Answer 1

Make products and services faster 
Make products smaller (more compact) 
Make products and services cheaper 
Make products and services easier to use 
Make products safer

Question 2

What are some changes that lead to consumers spending their money in different ways?

Answer 2

Changes in fashions 
Changes in the economy 
Changes in national demographics 
Changes in lifestyle, such as the way consumers spend their leisure time 
Changes in technology

Question 3

What is obsolescence?

Answer 3

The introduction of new technology and the changing nature of consumer needs means that products and services can become obsolete very quickly.

Question 4

What is planned obsolescence?

Answer 4

Many products are designed to last a short time, and consumers are encouraged to buy newer and improved versions of these products.

Question 5

What is innovation?

Answer 5

Generating ideas from developed, existing ideas such as making slight changes and improvements to an existing product or service.

Question 6

What are demographics?

Answer 6

Relating to the structure of population

Question 7

What is an entrepreneur?

Answer 7

Someone who creates a business, taking on financial risks with the aim of making a profit from business.

Question 8

What is a consumer?

Answer 8

Someone who buys and uses goods and services

Question 9

What does obsolete mean?

Answer 9

Out of date or no longer used

Question 10

How do you work out risk?

Answer 10

Risk is worked out by considering the probability of a negative 👎🏻 outcome occurring and the impact of the negative outcome. Starting any business will involve taking a risk because there are so many unknown factors that affect long-term business success.

Question 11

What are the rewards of starting a business?

Answer 11

Business success- personal satisfaction, excellent products/services, growth and rewards and recognition
Profit- where revenue exceeds costs over a period of time
Independence- many business owners will value the freedom of working for themselves over working for someone else.

Question 12

What are the risks of starting a business?

Answer 12

Business failure- through poor cash 💰 flow, fall in sales revenue or the action of competitors
Financial loss- an owner may lose the capital they invest in the business if it fails. This could include their personal belongings of the business has unlimited liability.
Lack of security- not working for someone else means no guaranteed income, sick pay or holidays

Question 13

How can risk be reduced?

Answer 13

Carry out detailed market research
Produce a business plan
Ensure that the business is competitive
Raise sufficient start-up finance

Question 14

What makes some businesses riskier than others?

Answer 14

Seasonal demand, such as ice cream 🍦
A small market
A highly competitive market with loads of competitors
An owner who knows little about the product or market

Question 15

What is enterprise?

Answer 15

A person or organisation with the purpose of producing goods and services to meet the needs of customers

Question 16

What is profit?

Answer 16

The amount of revenue left over once the costs have been deducted.

Question 17

What is the purpose of all products and services?

Answer 17

To meet the needs of customers, often in order to make a profit

Question 18

What is a supplier?

Answer 18

A business that sells (supplies) products to another business.

Question 19

What is production?

Answer 19

Using raw materials, labour and machinery to make products

Question 20

What is the difference between customers and consumers?

Answer 20

Customer: a person or organisation that buys the product or service
Consumer: the person that uses (consumes) the product.

Question 21

How can a business add value to its product?

Answer 21

By lowering variable costs or adding something that will make customers willing to pay a higher price.

Question 22

What are ways to add value?

Answer 22

More convenience 
Unique selling point 
Better design 
Improved quality 
Branding 
Greater speed of service

Question 23

What is unique selling point (USP)?

Answer 23

Something that makes a product or service stand out from its competitors

Question 24

What are the benefits of adding value?

Answer 24

The added value of a product goes towards paying off a company’s fixed costs. The higher the added value, the sooner costs can be paid off and the quicker a business can make profit. The more value a business can add to its products, the more chance the business has of success, survival and long-term growth

Question 25

What do entrepreneurs do?

Answer 25

Have an idea>take a risk>organise the resources to set up a business>employ people>make business decisions>establish and grow a successful business

Question 26

What are enterprise skills?

Answer 26

Risk-taking
Showing initiative
Willingness to undertake a new venture

Question 27

What is an invention?

Answer 27

Creating something completely new

Question 28

What is innovation?

Answer 28

Changing an existing product or process

Question 29

How do entrepreneurs benefit the economy?

Answer 29

Creating products and services to meet people’s needs
Creating jobs
Generating economic activity through consumer spending
Paying tax to the government
Exporting goods abroad