Topic 1.1 Enterprise and entrepreneurship

Question 1

Entrepreneur

Answer 1

Business people who see opportunities and are willing to take risks in making them happen in order to earn a profit.

Question 2

Dynamic Nature of Business

Answer 2

The idea that business is ever-changing because external factors, such as technology, are always changing.

Question 3

Venture capital

Answer 3

risk capital provided by an investor (venture capitalist) willing to take a risk in return for a share un any alter profits; the venture capital provider will take a share stake in the business.

Question 4

Demand

Answer 4

The number of units that customers want and can afford to buy

Question 5

Customer

Question 6

Consumer

Question 7

Obsolete

Answer 7

A product or service with sales that have declined of come to an end as customers find something new

Question 8

Adapting existing products

Answer 8

Finding new products based on original ones

Question 9

Competetive Advantage

Answer 9

A feature of a business that helps it to succeed against rivals

Question 10

Original ideas

Answer 10

Ideas that have not been done before

Question 11

Business Failure

Answer 11

The collapse of a business leading to its closure

Question 12

Independance

Answer 12

The need by many business owners to make their own desicions and be their own boss

Question 13

Lack of Financial Security

Answer 13

Uncertainty for the business owner about family income and assets

Question 14

Risk and reward

Answer 14

The balance between the worst that can happen and the best that can happen

Question 15

Customer needs

Answer 15

The products or services people need to mkae life comfortable

Question 16

Customer wants

Answer 16

What people choose to spend their money on once the weekly bills have been paid

Question 17

Goods

Answer 17

Products that may be fresh such as apples or manufactured such as Heinz baked beans

Question 18

Services

Answer 18

Providing useful ways for people to live their lives for example shops, restaurants and hospitals

Question 19

Gross profit

Answer 19

The amount of money made when you take away the cost of sales from the sales revenue

Question 20

Expenses

Answer 20

The indirect cost you have to pay for example labour

Question 21

Competetive advantage

Answer 21

The unique selling point that one business has making their product better than its competetitors

Question 22

Branding

Answer 22

Giving a product or service perssonality with a name or logo that makes it stand out

Question 23

Unique selling point

Answer 23

An original feature of a product that rivals arent offering

Question 24

Value added

Answer 24

The difference between the selling price and the cost of bought in goods and services

Question 25

Business decisions

Answer 25

choices that have to be made usually within a short time period

Question 26

Human resources

Answer 26

A term used by organisations that simply means employees

Question 27

Resources

Answer 27

Things or people that can be used to help build or run the business

Question 28

Risk taking

Answer 28

Making decisions where unkown factors or chances of failure loom large in the decision makers mind

Question 29

Capital

Answer 29

Wealth in assets used to invest or pay to start up a company

Question 30

Land

Answer 30

A part of the earth’s surface that is not covered in water and can be owned