Topic 1.1 Enterprise and entrepreneurship Flashcards
What are the 3 risks of running a business?
- Business failure
- Financial loss
- Lack of security
What are the 3 rewards of running a business?
- Profit
- Business success
- Independence
What is financial loss?
The owner may have lose capital or had personal assets taken away due to the business failing.
What is lack of security?
Not having a guarantee income and also not having a guarantee that the business will be successful
What is business failure?
Through poor cash flow or fall of sales led the business to fail.
What is profit?
Profit is a measure of success and can lead the business to expanding.
What is business success?
having personal satisfaction and excellent products or service.
What is independence?
the business owner having freedom of working and decision making.
What are suppliers?
a business that sells raw materials to other businesses.
What is the difference between a customer and a consumer?
A customer is someone that purchase the product and the consumer is someone that uses the product.
What is the role of entrepreneurship?
- organises resources
- Makes business decisions
- takes risks
What is the role of business enterprise and the purpose of business activity?
- to produce a good or service
- To meet customer needs
- To add value
What are the 5 ways a business can add value?
- convenience
- branding
- quality
- design
- USP (unique selling point)
