unit 1 aos1

Question 1

entrepreneurship

Answer 1

the process of establishing a business to satisfy a need in the market whilst taking on the associated risks

Question 2

5 reasons to start a business

Answer 2

personal independence, financial independence, to make a profit, to fulfil a market need, to fulfil a social need.

Question 3

personal independence

Answer 3

involves a person being in control of their own decisions and actions

Question 4

financial independence

Answer 4

the ability to fund a desired lifestyle without relying on income from another individual

Question 5

making a profit

Answer 5

a business generating more revenue than expenses it incurred

Question 6

fulfilling a market need

Answer 6

is when a business fills a gap in the market by addressing customer needs that are currently unmet by competitors in the industry

Question 7

fulfilling a social need

Answer 7

is improving society and the environment through business activities

Question 8

6 sources of business opportunity

Answer 8

innovation, market opportunities, changing customer needs, research and development, tech development, global markets

Question 9

innovation

Answer 9

involves creating and implementing new ideas or significantly improving upon an existing good, service or way of doing something

Question 10

market opportunities

Answer 10

a need or want that is not being met by any business

Question 11

changing customer needs

Answer 11

are the transitions in the desires of consumers

Question 12

research and development

Answer 12

directing resources, such as money towards discovering, creating, and introducing new products and processes

Question 13

technological developments

Answer 13

are the invention and innovation of the tools that can solve problems and enhance processes

Question 14

global market

Answer 14

is the area in which businesses trade goods and services, comprised of both businesses and customers from countries across the world

Question 15

business goals

Answer 15

are what a business wants to achieve in a specific time frame. can either be financial or social goals.

Question 16

SMART Goals

Answer 16

Specific, Measurable, Attainable, Relevant, Time-bound

Question 17

business concept

Answer 17

a brief outline of the business’s idea, its main selling activities, and the features that will provide it with a competitive advantage

Question 18

market research

Answer 18

the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry

Question 19

initial feasibility study

Answer 19

is a researched evaluation of how viable a business concept is

Question 20

economic wellbeing

Answer 20

reflected by the level of income, consumption, and wealth people or households have to support their material living standards.

Question 21

council grant

Answer 21

a one off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development

Question 22

regional start-up hubs

Answer 22

are physical spaces that individuals and businesses can utilise in order to have office facilities to work in, or to obtain support regarding business matters

Question 23

characteristics of successful entrepreneurs

Answer 23

willing to take risks and strong networking ability

Question 24

why is goal setting important?

Answer 24

without goals, a business may struggle to identify the direction it wants to take and won’t know how to achieve it. allows employees work towards a shared goal

Question 25

vision statement

Answer 25

where the business wants to be in the future

Question 26

mission statement

Answer 26

what the business does and how it will achieve it’s vision