Topic 1.1.3 The role of business enterprise

Question 1

What is the role and purpose of business activity?

Answer 1

To produce goods and services,to meet customer needs-satisfies and exceeds customer expectations which can encourage more customers to the business than competitors,to add value-Makes a business stand out from its competitors

Question 2

How can businesses add value?

Answer 2

Branding-Differentiates your business from others as more customers will recognise your business fro others for example if you have a different logo to other businesses you will stand out because customers haven’t see your business logo before.As a result,could lead to more customers coming to your business than competitors.
Quality-A business providing a high quality product can attract more customers who are willing to pay a high price.As a result,increases the profit of the business.
Design-Business having a unique design differentiates it from other products-consumers are willing to pay a high price.
Convenience-Customers are willing to pay more for a product that saves them time.

Question 3

What is the role of an entrepreneur?

Answer 3

Take risks
-Make business decisions
-Organising resources