1.1 enterprise and entrepreneurship

Question 1

What is a dynamic market?

Answer 1

A dynamic market is one that is in a rapidly changing business environment.

Question 2

Why is it important for a business to understand its market?

Answer 2

It is necessary to understand the market in which the business operates to comprehend what makes it dynamic.

Question 3

What must a new business understand about the market it is entering?

Answer 3

A new business has to understand how dynamic the market is that it is entering.

Question 4

What factors can influence the dynamism of a market?

Answer 4

The dynamism of a market can vary depending on the type of business.

Question 5

How must businesses respond to a dynamic market?

Answer 5

Businesses have to adapt and develop new ideas, products, and services to keep up with technology and new trends.

Question 6

What are some sources of new business ideas?

Answer 6

Business ideas can come about through:
• changes in technology
• changes in what consumers want
• products and services becoming obsolete.
• new and original ideas
• adapting existing products, services, and ideas.

Question 7

What are demographics?

Answer 7

Demographics are the different characteristics that make up a population or a business customer base.

Question 8

List some characteristics included in demographics.

Answer 8

• Age
• Gender
• Disability
• Nationality
• Religion
• Ethnicity
• Income levels

Question 9

How do businesses use demographics?

Answer 9

Businesses use demographics to help them decide on the target market for a product or service they want to offer.

Question 10

True or False: Changes in demographics can impact consumer wants.

Answer 10

True

Question 11

Fill in the blank: An ageing population might create new opportunities for businesses that target ______ consumers.

Answer 11

[older]

Question 12

what are the risks of business activity