Theme 1.1

Question 1

What is business enterprise?

Answer 1

Business enterprise is the process of identifying new business opportunities and then taking advantage of them.

Question 2

Give three purposes of business activity

Answer 2

Provide people with a good or service, Meet customer needs and Add value

Question 3

Name the ways in which a business can add value to a product

Answer 3

Make a product convenient, Having a good brand image for a product, Improve the design or quality, Have a USP for the product.

Question 4

Why do new business ideas come about?

Answer 4

Changes in technology, Change in consumer needs, Products becoming obsolete.

Question 5

What are the two types of business ideas?

Answer 5

Business ideas can be original or an adaptation of an existing product.

Question 6

What is an entrepreneur?

Answer 6

An entrepreneur is someone who takes on the risks of enterprise activity.

Question 7

What must an entrepreneur be able to do to run a successful business?

Answer 7

Organise resources (cash flow, resource, organisation), Take risks(Leave current job, Lack of security, Potential failure), Make business decisions(using intuition).

Question 8

What are the risks of running a business?

Answer 8

Lack of security (no steady income, could end up unemployed, leave a former job).

Failure (Time, money and effort wasted).

Financial Loss

Question 9

What are the rewards of running a business?

Answer 9

Success, Making a profit, Independence & Choice