1.1 Flashcards
Q: Why do new business ideas come about?
A:
New business ideas emerge due to changes in technology, shifts in consumer demand, and the obsolescence of products and services.
Q: What role does technology play in generating new business ideas?
A:
Technological advances create opportunities for businesses to develop innovative products and services. For example, smartphones and social media platforms led to opportunities in mobile apps and digital marketing.
Q: How does changing consumer demand contribute to new business ideas?
A:
Evolving consumer needs open doors for businesses to create new products and services. An example is the rise in demand for plant-based food products, leading to the emergence of new businesses in the food industry.
Q: In what situation do products and services become opportunities for new business ideas?
A:
Products and services become opportunities when they become obsolete due to changes in technology or consumer demand. For instance, the decline of physical media like CDs created opportunities for digital streaming services like Netflix and Spotify.
Q: What is the key to business success in terms of generating new ideas?
A:
The key to business success is identifying a need or opportunity in the market and developing an innovative solution that uniquely and valuably meets customer needs.
Q: What is the source of original business ideas?
A:
Original ideas stem from identifying a gap in the market or a new need. They can be based on new technology, a new market, or a unique perspective on an existing problem.
Q: Provide an example of an original business idea.
A:
Nutrigene, a business offering personalized vitamin supplements based on an individual’s DNA, is an example of an original idea not based on existing products or services.
Q: What does adapting existing products or services involve in generating new business ideas?
A:
Adapting involves taking an existing concept and making it better or more suitable for a different market or customer base. It often addresses problems with existing products or services.
Q: Give an example of a business that adapted an existing concept.
A:
Uber adapted the concept of taxi services, offering a more convenient and cost-effective solution accessible through a mobile app.
Q: How does business failure impact businesses?
A:
Business failure, affecting businesses of all sizes, occurs when a business cannot meet financial obligations or generate enough revenue to sustain operations. It can lead to job losses, bankruptcy, and financial ruin for owners and investors.
Q: What are the causes of financial loss in business activity?
A:
Financial loss can result from poor financial management, economic downturns, or unexpected events like natural disasters. Its impacts include reduced profitability, competitiveness, and the ability to invest in growth.
Q: What does lack of security in business activity refer to?
A:
Lack of security pertains to risks related to data security, intellectual property theft, or physical security. Breaches can result in reputational damage, legal liability, and loss of customer trust.
Q: How can entrepreneurs reduce risks in business activity?
A:
Entrepreneurs can reduce risks by managing cash flows carefully, conducting thorough market research, and setting clear aims and objectives.
Q: What is the ultimate reward that business owners strive for?
A:
Business success is the ultimate reward, achieved when a business meets or exceeds objectives, such as generating revenue, achieving profitability, or expanding operations.
Q: What role does profit play in business activity?
A:
Profit is a measure of business success, enabling reinvestment in growth opportunities, payment of dividends to shareholders, and providing financial stability to the business.
