Business - topic 1.1

• What are the main factors that can lead to new ideas in business?

  Changes in technology, customer wants, obsolescence, and original ideas
• What does it mean for a product or service to become obsolete?


  It means the product or service has declined or ended as customers find something new
• What is demand in a business context?


  The number of units that customers want and can afford to buy
• What is e-commerce?


  Any business transaction that takes place using the internet
• What role do social media platforms play in business?

  They allow businesses and customers to interact
• How do technological developments impact business opportunities?

  They increase the opportunities and potential for new improved business ideas
• Why do customer tastes changing present opportunities for entrepreneurs?

  It allows entrepreneurs to develop new products and services
• What are demographics in a business context?


  The different characteristics that make up a population
• What is the product life cycle?


  The lifespan of a product from introduction to obsolescence
• What is one main reason products become obsolete?

  Technological advancements
• What is innovation in a business context?


  The successful communication of an invention or adaptation of a product
• What is the role of risk in business decisions?


  Every business decision has an element of risk
• What is market research?


  Gathering data about customers, competitors, and market trends
• What is venture capital?


  New capital provided by an investor willing to take a risk for a share in profits
• What is a significant risk entrepreneurs face when starting a business?


  Giving up a regular income from an existing job
• What does poor revenue indicate in a business?


  A lack of market research, high running costs, or poor management
• What are some rewards of starting a business?

  Profits, business growth, and independence
• What does adding value mean in a business context?

  Enhancing a product to make it more appealing to customers
• What is a unique selling point (USP)?

  A key differentiator that makes a product stand out
• What are the key resources businesses need to produce goods or services?


  • Land
  • Labour (employees)
  • Capital (money/investments)
  • Enterprise (willingness to take risks and make decisions)
• What qualities make a good entrepreneur?


  • Taking risks
  • Making business decisions
  • Showing leadership
  • Organising resources