Enterprise And Entreprenuership

Question 1

What is a business enterprise

Answer 1

Any operation established to produce or supply goods/services desired by consumers generally with the view of making a profit for example; apple

Question 2

What are factors of production

Answer 2

The inputs of land, labour, capital and entrepreneurship required to produce or supply goods/services. These are essential inputs for a business.

Question 3

What are the 4 factors of production

Answer 3

Land
Labour
Capital
Enterprise

Question 4

What is the FOP of land

Answer 4

These are the natural resources as well as the site the capital is built on for example; fields, minerals and farming

Question 5

What is the FOP of labour

Answer 5

These are the Human Resources available except entrepreneur for example; employees

Question 6

What is the FOP of capital

Answer 6

These are the buildings, machinery, tools as well as the materials and ingredients for example; premises/buildings. Capital means money in other topics but not in factors of production

Question 7

What is the FOP of enterprise

Answer 7

This is the entrepreneur who organises all three FOPS

Question 8

What is an E-Tailer

Answer 8

This is a business that only sells online, for example; ASOS

Question 9

What does Inputs mean

Answer 9

Resources used

Question 10

What does outputs mean

Answer 10

This is the products produced

Question 11

What is an entrepreneur

Answer 11

This is someone who is willing to take risks to start a new business for example, Richard Branson who can also be known as a serial entrepreneur due to multiple businesses

Question 12

Explain two factors of production

Answer 12

One factor of production is labour these are the employees that produce the goods
Another factor is land this is the natural resources including fields and minerals as well as where the site it built on

Question 13

What are entrepreneurial characteristics

Answer 13

These are commons traits found in successful entrepreneurs for example, innovative, visionary, flexibility, knowledgeable, risk taker, decisiveness, goal oriented, motivated and committed

Question 14

What are motive to enterprise

Answer 14

• money
• taking advantage of opportunities
• to create their own jobs possibly due to redundancy
• to earn money from a hobby or interest
• to be ther own boss
• personal satisfaction
• continuing a family business that already exists (succession planning)

Question 15

Explain why the motive to make money

Answer 15

This is a financial motive that is usually a primary objective by taking risks they can be motivated to maximise profit

Question 16

Explain the motive to increase capital

Answer 16

This is a financial motive they would want to increase capital invested in the business to make the business more valuable

Question 17

Explain the motive of taking advantage of an opportunity

Answer 17

This is a non financial motive, they could’ve identified a gap in the market due to personal experience and develop the ambition to come up with innovative ways to manufacture and market their own chosen product for example; uni baggage

Question 18

Explain the motive of creating their own job

Answer 18

This is a non financial motive as they may want to be in control of their own hours and want an opportunity to develop their own ideas

Question 19

Explain the motive of ethical/eco reasons

Answer 19

This is a non financial motive as they my want a business that is ethical and eco-conscious as a unique selling point such as lush

Question 20

Explain the characteristic of a risk taker

Answer 20

Being risky could include investing their personal savings or loans as well as wanting to leave their own jobs

Question 21

Explain the characteristic of being innovative

Answer 21

They can spot gaps in the market and envisage opportunities and seize them to maximise profit and customer base

Question 22

Explain the characteristic of being committed

Answer 22

They need to be committed with time and money while having commitment in employees

Question 23

Explain the motive of hard work and determination

Answer 23

Similar to commitment they must continue to improve in order to gain business success

Question 24

What is the characteristic of motivation

Answer 24

They can suffer setbacks due to a large market or a lack of customers and suppliers, they must push themselves to continue in adversity

Question 25

What is the characteristic of vision

Answer 25

They have to have an overall ideas to continue to efficiently grow their business.

Question 26

What is the characteristic of flexibility

Answer 26

They must work longer or shorter hours as well with investing money. They invest in a business in order to continue growth. They may have to be flexible with prices in order to establish a customer base.

Question 27

What are setbacks

Answer 27

Setbacks refer to financial issues such as a lack of suppliers, loans from banks and how many customers

Question 28

What does fixed capital mean

Answer 28

This includes all the machinery, work plants, equipment, technologies, goods, factories and buildings for example, tattoos building, production and equipment are fixed assets

Question 29

What is working capital

Answer 29

This includes the stock of finished and semi-finished goods and components that’ll either be consumer in the future or used up in the production process, for Tayto this includes the sliced and fried potato’s that are yet to be flavoured as well as all the boxed bags.

Question 30

What are renewable resources

Answer 30

These are goods that can be used then replaced for example wood.

Question 31

What are non-renewable resources

Answer 31

These are goods that once used can’t be used again for example, coal and oil.