1.1

Question 1

Why do new business ideas come about?

Answer 1

1. Changes in technology
2. Changes in consumer wants
3. Products becoming obsolete

Question 2

What are the 2 types of new ideas for businesses?

Answer 2

1. Original ideas (completely new due to a gap in the market)
2. Adapting existing ideas to fit the changing market

Question 3

What are 3 business risks?

Answer 3

1. Risk of failure - may not fit customer needs / wants
2. Financial loss - starting a new business requires a lot of investment
3. Lack of security - entrepreneurs often lose the security of regular wages and pay that they had with their old job

Question 4

What are some business rewards?

Answer 4

1. Independence of a business
2. Business success - if the business becomes big the entrepreneur will be able to sell the business for a large sum of money
3. Financial rewards - keep the profit
4. Persue an interest

Question 5

What is a good?

Answer 5

A physical (tangiable) product tha a business sells
Eg Coca Cola

Question 6

What is a service?

Answer 6

A non physical (intangible) action performed by a business to help customers
Eg Snapchat

Question 7

What is a customer need?

Answer 7

Something that people can’t live without
Eg water

Question 8

What is a customer want?

Answer 8

Products / services that we don’t need but would like to have
Eg jewellery or television

Question 9

What is enterprise?

Answer 9

A business or organisation

Question 10

What are the 5 ways to add value?

Answer 10

1. USP - unique selling point
2. Quality
3. Convenience
4. Branding
5. Design

Question 11

What does an entrepreneur have to do to be successful?

Answer 11

1. Take risks
2. Identify business opportunities
3. Be innovative - spot the gap in the market