The Role Of Business Enterprise

Question 1

What is added value?

Answer 1

The extra value a business creates through its production, distribution or marketing process.

Question 2

How can a business create added value through its production?

Answer 2

Improve product design, features, or quality + USP

Question 3

How can a business create added value through its distribution?

Answer 3

Offer a product/ service in a more convenient location

Question 4

How can a business create added value through marketing?

Answer 4

Create brand image

Question 5

What are 4 pros of adding value?

Answer 5

Products/Services stands out from Rivals, Charge Higher Prices, Large Profit Per Unit, Increase Market Share

Question 6

What does a larger profit per unit lead to?

Answer 6

Lower break-even output, higher margin of safety = lower risk

Question 7

What does a product standing out from its rivals lead to?

Answer 7

A higher chance of repeat business, Competitive Advantage

Question 8

What do businesses do?

Answer 8

PAM, Produce goods and services, Add value, Meet the needs of customers