1.1 - Enterprise and Entrepreneurship

Question 1

Which one of the following is a method to add value?

Accepted Answer

Convenience, Branding, Quality, USP

Question 2

Why do new ideas come about?

Accepted Answer

There is a gap in the market

Question 3

A business makes cakes for parties and weddings. Which two resources will it use in production?

Accepted Answer

Flour, Labour

Question 4

Which one of the following is an example of a service?

Accepted Answer

Train journey

Question 5

Which two of the following might be a source of added value for a farming business?

Accepted Answer

Speed of delivery from harvesting to the customer, Quality of products grown on the farm

Question 6

Why do business ideas come about?

Accepted Answer

Changes in technology

Question 7

Why does a market change rapidly?

Accepted Answer

Customers develop new needs and wants, Nature of the product/service, External shock, New rivals enter a market

Question 8

A fixed cost is...

Accepted Answer

A cost that doesnt change according to output

Question 9

Which of these might be a sign that a business is likely to fail?

Accepted Answer

New customers do not return

Question 10

Why is adding value important?

Accepted Answer

You can charge a 'premium price', Helps create a loyal customer base, Increases a firms' profit margin

Question 11

A start up is more likely to fail if:

Accepted Answer

The ownner has no experience

Question 12

How can a business reduce its business risk?

Accepted Answer

Switch to a different business ownership model

Question 13

The formula for total revenue is...

Accepted Answer

Price * Quantity sold

Question 14

An example of a variable cost is...

Accepted Answer

Material costs

Question 15

What is an obsolete product?

Accepted Answer

A product that is no longer use or out of date

Question 16

What is the definition of a product?

Accepted Answer

Anything that is capable of satisfying customer needs

Question 17

The formula for profit is...

Accepted Answer

Total revenue - Total costs

Question 18

What does 'business rewards' mean?

Accepted Answer

The benefits of having a business

Question 19

What is the purpose of business activity?

Accepted Answer

To produce goods and services

Question 20

Which one is an example of a want?

Accepted Answer

Watch

Question 21

Why is a 'lack of security' a busines risk for a business owner?

Accepted Answer

Due to the insecurity of sales i.e. demand can fluctuate

Question 22

Why is added value important to the survival of a business?

Accepted Answer

Negative value added is unlikely to make enough to pay costs

Question 23

Which one is an example of a risk for a sole trader?

Accepted Answer

Unlimited liability

Question 24

A sole trader needs to pay what on his profits

Accepted Answer

Income tax

Question 25

Which of the following do customers want...

Accepted Answer

Quality products, Convenience, Choice, Competitive prices

Question 26

Which one of these is a tangible product?

Accepted Answer

I phone

Question 27

Can you identify the obsolete product?

Accepted Answer

Type writer

Question 28

How many shops do you think closed in the UK Jan – June 2016?

Accepted Answer

2,656

1.1 - Enterprise and Entrepreneurship

Questions 28

1.1 - Enterprise and Entrepreneurship

Questions 28