1.1.3 The role of business enterprise Flashcards
1
Q
Who are suppliers?
A
a business that sells products to another business
2
Q
What is production?
A
using raw materials, labour and machinery to make products
3
Q
Who are customers?
A
a person or organisation that buys the product or service
4
Q
Who are consumers?
A
the person that uses the product
5
Q
How can a business add value?
A
- more convenience
- unique selling point
- better design
- improved quality
- branding
- greater speed of service
6
Q
What is the benefit of adding value?
A
- added value goes towards paying company’s fixed costs
- the higher the added value the sooner the company can off costs and start making profit,
- the more value a business can add to their product, the more chance of survival, success and long-term growth
7
Q
What is a USP?
A
a unique selling point is another way to add value to a product and will help a business compete.
8
Q
How is an entrepreneur?
A
- a person who owns and runs their own business
- risk-takers who have initial idea and the willingness and confidence to see it through
9
Q
What do entrepreneurs do?
A
- have an idea
- take a risk
- organise the resources to set up a business
- employ people
- make business decisions
- establish and grow a successful business
10
Q
How are new products created?
A
through invention and innovation
11
Q
How do entrepreneurs benefits the economy?
A
- creating products and services to meet people’s needs
- create jobs
- generating economic activity through consumer spending
- paying tax to the government
- exporting goods abroad
