Enterprise and entrepreneurship Flashcards
1
Q
what does a business need to be to be successful?
A
Dynamic
2
Q
what are business ideas generated because of?
A
- changes in technology.
- changes in consumers tastes.
- outdated goods and services.
3
Q
what can risks lead to?
A
- business failure
- loss of money
- lack of a secure income
4
Q
what can rewards lead to?
A
- having a successful business
- making a profit
- being independent
5
Q
what is profit?
A
the difference between the revenue earned by a business and the costs of a business
6
Q
five ways to add value to a product?
A
branding, quality, design, convenience, usp’s
7
Q
the four factors of production:
A
capital - man-made resources
land - all natural resources
labour - human imput
enterprise - skills and characteristics
8
Q
what is a good?
A
a good is a physical product that is tangible.e.g. a phone
9
Q
what is a service?
A
services are non-physical.e.g. a driving lesson
10
Q
equation to find out profit?
A
total costs - total revenue = profit
