Topic 1.1.1 Business - Dynamic nature of business

Question 1

Entrepreneur

Answer 1

Someone who creates a business, taking on financial risks with the aim of making a profit from the business

Question 2

Consumer

Answer 2

Someone and uses goods and services

Question 3

Obsolete

Answer 3

Out of date of not used anymore

Question 4

Benefits of new product idea

Answer 4

.Helps to keep up with changing consumer wants,
.Less risky than a new product because it cuts development costs and speeds up the launch of the adapted product.

Question 5

Backdraws of new product idea

Answer 5

.Risky because of development costs and it could be a slow process to get the product into the market.
.The business will be at a loss unless people buy the product.

Question 6

What do changes in consumer wants, new technology and obsolete products lead to?

Answer 6

.Changes in consumer wants leads to new demands. Businesses need new ideas to meet these new demands.

• New technology can lead to products and services becoming obsolete, so businesses need new ideas to avoid business failure. If they do not have new ideas, the business will fail because their products are obsolete, and customers will not buy them.
• Products that are obsolete are out of date and not popular. Customers will not buy obsolete products, so businesses need new ideas to stay solvent.

Question 7

Why business ideas come about ?

Answer 7

changes in technology, changes in consumer wants, obsolescence of goods and services

Question 8

How do business ideas come about?

Answer 8

Original ideas and adapting existing products and services

Question 9

Advantage of entrepreneur

Answer 9

• Get to be your own boss.

Question 10

Disadv. of entrepreneuer

Answer 10

Lack of security

Question 11

E-commerce

Answer 11

Using the internet to carry out business transactions

Question 12

M-commerce

Answer 12

Using mobile technologies to carry out business transactions