Introduction To Business Enterprise

Question 1

Identify what is meant by the key term enterprise

Answer 1

Someone who takes up initiative and risk to set up a business

Question 2

Identify what is meant by the key term entrepreneur

Answer 2

A person who takes on financial risks in a business in hope of profit

Question 3

Identify four characteristics of an entrepreneur

Answer 3

Risk taking
Adaptability
Confident
Good decision making

Question 4

Explain the difference between an entrepreneur and somebody who is self employed

Answer 4

An entrepreneur organises and operated a business taking on financial risks

Self employed people work for themselves

Question 5

Describe one way that a successful entrepreneur can benefit the economy

Answer 5

Higher earnings and more employment generates a higher national income

Question 6

Describe one way that a successful entrepreneur can benefit a stakeholder of their business

Answer 6

Financial gain and support

Question 7

Identify two reasons that the government is keen to encourage enterprise and entrepreneurship

Answer 7

Increases the countries income
More money to invest in the country
Creates employment and provides opportunities and jobs
Less welfare benefit

Question 8

Explain what is meant by factors of production

Answer 8

What is used in the production process to produce output

Question 9

State the four factors of production

Answer 9

Land
Labour
Capital
Enterprise

Question 10

Land

Answer 10

Physical space and natural resources

Question 11

Labour

Answer 11

People who transform the lands resources into goods and services

Question 12

Capital

Answer 12

Physical equipment and money

Question 13

Enterprise

Answer 13

Combine the other factors to make profits

Question 14

Describe the link between an entrepreneur and decision making relation to the factors of prof=diction

Answer 14

All the factors are combined to make a profit