unit 1- enterprise

Question 1

what is an entrepreneur

Answer 1

an entrepreneur is someone who starts and runs a business and is responsible for the risks involved.

Question 2

what are the four factors of production?

Answer 2

1- land or natural resources
2- labour
3- capital (equipment)
4- enterprise

Question 3

how are entrepreneurs important to the UK economy?

Answer 3

they are important because they normally create small business’ that become the basis of large successful business’ of the future

Question 4

what are the motives for become an entrepreneur?

Answer 4

• to escape an uninteresting job
• to pursue an interest or hobby
• to exploit a gap in the market
• to market a new product
• to be your own boss

Question 5

what is opportunity cost?

Answer 5

opportunity cost is the cost of the next best alternative if you decide to take the current option

Question 6

what is the risk and reward of opportunity cost?

Answer 6

entrepreneurs take risks, usually using their own money, and in return respect a reward, normally a partly financial one

Question 7

what are government grants?

Answer 7

government grants are sums of money given to a business for a specific project or purpose, they normally contribute to the costs rather than funding the whole thing

Question 8

what is enterprise?

Answer 8

enterprise is the ability to come up with and carry out new business ideas