Topic 1.1 - Enterprise and Entrepreneurship

Question 1

1.1.1
Why do new business ideas come about? (3 points)
+ one example for each

Answer 1

• 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)

Question 2

1.1.1
How do new business ideas come about? (2 points)

Answer 2

• original ideas
• adapting existing products/services/ideas

Question 3

1.1.2
What is the impact of risk on an entrepreneur? (2)

Answer 3

• business failure ->
• financial loss ->
• lack of security/debt/bankruptcy

Question 4

1.1.2
What is the impact of reward on business activity? (2)

Answer 4

• business success ->
• profit ->
• independence

Question 5

1.1.3
What is the role of a business enterprise and the purpose of business activity? (3)

Answer 5

• to produce goods or services
• to meet customer needs
• to add value to their product/service

Question 6

1.1.3
How do you add value to a product/service? (5)

Answer 6

• convenience
• branding
• quality
• design
• unique selling point

Question 7

1.1.3
What is the role of entrepreneurship? (3)

Answer 7

an entrepreneur:
- organises resources
- makes business decisions
- takes risks

Question 8

E-commerce

Answer 8

the process of buying and selling products or services online

Question 9

M-commerce

Answer 9

the process of buying and selling products or services on mobile phones

Question 10

Enterprise

Answer 10

A project or undertaking

Question 11

Entrepreneur

Answer 11

A person who sets up a business

Question 12

Marketplace

Answer 12

A place where you can perform commerce

Question 13

Consumer

Answer 13

A person who buys things for personal use

Question 14

Obsolete

Answer 14

No longer produced or used

Question 15

Patent

Answer 15

A patent is a registered right that gives the owner exclusive rights to features and processes of inventions.

Question 16

Copyright

Answer 16

Copyright is an automatic right which protects original literary, dramatic musical and artistic work.

Question 17

Trademark

Answer 17

A trademark protects logos and signs that are used in relation to a particular type of product or service.

Question 18

Calculated Risk

Answer 18

Putting a numerical value on the probability of risk

Question 19

Corporation tax

Answer 19

The tax a company has to pay if they make a profit

Question 20

Outlay

Answer 20

How much it costs to make a product 

Question 21

Markup

Answer 21

The price of the product subtracted by the outlay (money required to produce product)

Question 22

Added Value

Answer 22

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

Question 23

Unique selling point (USP)

Answer 23

The aspect of a businesses activity that makes it distinctive and set it apart from its competition.

Question 24

Branding

Answer 24

A way of defining a business

Question 25

Values

Answer 25

Standards of behaviour or moral principles

Question 26

Market Research

Answer 26

Finding out what people want in a product or service

Question 27

Market segmentation

Answer 27

Breaking down the market into smaller parts

Question 28

Demographic

Answer 28

relating to the structure of a population

Question 29

Psychographics

Answer 29

The study of personality, values, opinions, attitudes interests, and lifestyles.

Question 30

output

Answer 30

the amount of product made by the business