Topic 1.1

Cards (16)

  • Purpose of a business:
    1. Provide Good or service
    2. Meet Customer needs
    3. Add value to existing products
  • Reasons for new business ideas:
    1. Changes in technology
    2. Products becoming obsolete
    3. Changes in consumer wants
  • Businesses have new ideas because the world is dynamic and they need to keep up or they will be obsolete
  • Business Enterprise is the process of identifying a business opportunity in the market and starting up a new business
  • An Entrepreneur is someone who takes risk in a business
  • Duties of and Entrepreneur:
    1. Have to be a risk taker
    2. Good Organisation skills
    3. Make decisions
  • Financial Loss: The loss of money which causes the business to struggle
  • Rewards: success, making profit which improves quality of life and independence
  • The 3 types of business risk:
    1. Business failure
    2. Financial loss
    3. Lack of security
  • Lack of security: Don't have something to rely on if the business fails because the entrepreneur has usually left their job to start the business
  • Business Failure: There is always a risk of business failing
  • Obsolete :when a product becomes out of date or no longer used
  • Tangible: Products your able to touch
  • Intangible is a good or service that your unable to touch
  • Customer is a person that buys the product
  • Consumer is a person who uses the good or service