Theme 1.1.1 - dynamic nature of business

Question 1

What are the main external factors that cause business change?

Answer 1

Technology, consumer trends, economic conditions, and competition

Question 2

What is an entrepreneur?

Answer 2

Someone who takes the risk of starting a new business

Question 3

How can changes in technology affect businesses?

Answer 3

They can lead to new products, services, or ways of delivering them

Question 4

What is the difference between invention and innovation?

Answer 4

Invention is creating something new; innovation is improving or using it in a new way

Question 5

What does it mean when a product becomes obsolete?

Answer 5

It becomes discontinued. It is no longer used or wanted, often due to newer alternatives

Question 6

How can a business gain a competitive advantage?

Answer 6

By offering better value, quality, service, or innovation than competitors

Question 7

What are three financial risks of starting a business?

Answer 7

Business failure, Financial loss and Lack of security

Question 8

What are three financial rewards of starting a business?

Answer 8

Business success, Profit and Independence

Question 9

What is meant by customer needs?

Answer 9

What customers require or expect from a product or service

Question 10

Why is the ability to adapt important for businesses?

Answer 10

To stay relevant and competitive in a constantly changing market