theme 1- 1.1

Question 1

why do new business ideas come about?

Answer 1

• changes in technology
• changes in what consumers want
• products and services becoming obsolete

Question 2

give an example of a change in technology

Answer 2

invention of tablets- meant more ideas for apps that could be used on them

Question 3

give an example for a change in what consumers want

Answer 3

an increase in concern for the environment- businesses have started to offer more environmentally friendly products

Question 4

give an example of products/ services becoming obsolete

Answer 4

DVDs- DVD rental companies began offering subscription streaming services to survive

Question 5

how do new business ideas come about?

Answer 5

• original ideas
• adapting existing products/ services/ ideas

Question 6

example of an original idea

Answer 6

James Dyson- vacuum cleaner- no longer needs dust bags- customers wanted it so they wouldn’t have to buy replacement bags

Question 7

how to adapt products

Answer 7

• improving it or making it more relevant to customers at the time

Question 8

what is the impact of risk on business activity?

Answer 8

• financial loss - won’t be able to pay back any money that’s been borrowed
• lack of security- entrepreneurs will usually have given up another job- therefore would lose money and end up jobless
• business failure- risks money, time and effort put into making the business work

Question 9

what is the impact of reward on business activity?

Answer 9

• business success
• profit
• independence - choose day to day tasks + direction of business

Question 10

what is business enterprise?

Answer 10

• identifying new business opportunities and taking advantage of them
  -can be starting a new business or expanding an existing one with new ideas

Question 11

what is the purpose of business activity?

Answer 11

• produce goods and services
• meet customer needs- providing goods people will want to buy
• to add value

Question 12

how can you add value to an existing product?

Answer 12

-convenience
- branding - building a good brand image for a product- more willing to spend money on a product if they recognise the product and know it’s trustworthy and desirable
- improving design
- improving quality
- USP- a feature that makes it different from its competitors, making it original

Question 13

what is an entrepreneur?

Answer 13

• someone who takes on the risk of enterprise activity

Question 14

what are the roles of an entrepreneur?

Answer 14

• organise resources (e.g having the right resources at the right time)
• take risks (willing to take calculated risks made through business plans)
• make business decisions (e.g business aims, structure, who to employ, mistakes, how to grow)