Topic 1.1 - Enterprise and Entrepreneurship Flashcards
1.1.1
Why do new business ideas come about? (3 points)
+ one example for each
- changes in technology (phones)
- changes in what consumers want (clothing)
- products and services obsolete (no need for CD players anymore as everyone switched to online streaming platforms etc)
1.1.1
How do new business ideas come about? (2 points)
- original ideas
- adapting existing products/services/ideas
1.1.2
What is the impact of risk on an entrepreneur? (2)
- business failure ->
- financial loss ->
- lack of security/debt/bankruptcy
1.1.2
What is the impact of reward on business activity? (2)
- business success ->
- profit ->
- independence
1.1.3
What is the role of a business enterprise and the purpose of business activity? (3)
- to produce goods or services
- to meet customer needs
- to add value to their product/service
1.1.3
How do you add value to a product/service? (5)
- convenience
- branding
- quality
- design
- unique selling point
1.1.3
What is the role of entrepreneurship? (3)
an entrepreneur:
- organises resources
- makes business decisions
- takes risks
E-commerce
the process of buying and selling products or services online
M-commerce
the process of buying and selling products or services on mobile phones
Enterprise
A project or undertaking
Entrepreneur
A person who sets up a business
Marketplace
A place where you can perform commerce
Consumer
A person who buys things for personal use
Obsolete
No longer produced or used
Patent
A patent is a registered right that gives the owner exclusive rights to features and processes of inventions.
Copyright
Copyright is an automatic right which protects original literary, dramatic musical and artistic work.
Trademark
A trademark protects logos and signs that are used in relation to a particular type of product or service.
Calculated Risk
Putting a numerical value on the probability of risk
Corporation tax
The tax a company has to pay if they make a profit
Outlay
How much it costs to make a product 
Markup
The price of the product subtracted by the outlay (money required to produce product)
Added Value
The amount by which the value of a product has arisen as a result of a person’s or firm’s part in producing a good or service
Unique selling point (USP)
The aspect of a businesses activity that makes it distinctive and set it apart from its competition.
Branding
A way of defining a business
Values
Standards of behaviour or moral principles
Market Research
Finding out what people want in a product or service
Market segmentation
Breaking down the market into smaller parts
Demographic
relating to the structure of a population
Psychographics
The study of personality, values, opinions, attitudes interests, and lifestyles.
output
the amount of product made by the business
