Topic 1.1 Business Studies

• What does the term "enterprise" refer to in business?


  Enterprise refers to the ability to come up with ideas and make them happen in business.
• What is entrepreneurship?


  Entrepreneurship is about starting and running your own business.
• What are the key components of enterprise?


  • Creativity
  • Problem-solving
  • Initiative
• Who are entrepreneurs?


  Entrepreneurs are people who take financial risks to start businesses.
• What do enterprise and entrepreneurship have in common?


  • Both involve innovation
  • Both involve opportunity recognition
• Give an example of someone demonstrating enterprise and entrepreneurship.


  A student who starts a car washing service in their neighborhood.
• What does the dynamic nature of business refer to?


  The dynamic nature of business refers to how businesses constantly change and adapt to new situations.
• What are some factors that contribute to the dynamic nature of business?


  • Responding to market trends
  • Adapting to new technologies
  • Reacting to competitor actions
  • Adjusting to economic changes
• How did many restaurants adapt during the COVID-19 pandemic?


  Many restaurants quickly adapted to offer takeaway and delivery services.
• What is risk in business?

  Risk is the possibility of financial loss or failure.
• What is reward in business?

  Reward is the potential for profit or success.
• What is the relationship between risk and reward in business?


  • Higher risks often come with the potential for higher rewards.
  • Entrepreneurs must balance risk and reward when making decisions.
• What are some types of business risks?


  Types of business risks include financial, operational, and market risks.
• What is an operational risk?


  relates to the internal processes, systems, or people within a company.
• What are examples of operational risks?


  • Equipment breakdowns
  • Human errors
  • IT system failures
  • Fraud or theft by employees
  • Supply chain disruptions
• What is a market risk?


  is a type of external risk due to factors in the broader market or economy.
• What are examples of market risks?


  • Changes in consumer preferences
  • Economic downturns
  • Fluctuations in exchange rates
  • Changes in interest rates
  • Increased competition
• What type of risk does a UK-based company face when concerned about changes in the value of the pound against the euro?


  This represents a market risk.
• What is the role of business enterprise in the economy?


  1. Creating wealth
  2. Providing goods and services
  3. Creating employment
  4. Driving innovation
  5. Contributing to economic growth
• What is the impact of business activities on economic development?


  Business activities stimulate economic development.
• How does sourcing products from local suppliers contribute to the role of business enterprise?


  It stimulates local economic growth and supports job creation.