Topic 1: Enterprise and Entrepreneurship EXAM Qs

Question 1

Give 5 ways social media has changed / improved businesses

Answer 1

Customers have the power to share their views on the business
Businesses can become more visible
Quick access to feedback
Free marketing
More competition

Question 2

What is the main benefit of customers having the power to share experiences on social media?

Answer 2

Social media has required businesses to invest in better customer service to prevent an angry customer voicing their negative opinion online and putting other customers off.

Question 3

What are the main benefits of increased competition as a result of social media?

Answer 3

Forces the company to provide a better service to attract more customers. The products need to be of a better quality and have a larger range to cope with competition. The competition can also lead to lower prices.

Question 4

Why is market research important?

Answer 4

It allows the business’ product or service to be better tailored to the needs and wants of their customer so the business is more likely to succeed because they know what they’re providing is wanted by their target audience.

Question 5

Give two examples of demographic data

Answer 5

Unemployment figures
Number of children per household
Gender
Age
Ethnicity 
Income

Question 6

How do you calculate percentage change?

Answer 6

B - A / A x 100

Question 7

What skills does an entrepreneur need?

Answer 7

Perseverance
Dedication
Willingness to take risks / risk-taker

Question 8

How many customers does Facebook have?

Answer 8

2 billion

Question 9

Who is the founder of Facebook?

Answer 9

Mark Zuckerberg

Question 10

Who is the founder of Amazon?

Answer 10

Jeff Bezos

Question 11

Give some risks of starting a business

Answer 11

THE BUSINESS IS NOT GUARANTEED TO SUCCEED
Business failure as a result of cash flow problems (not having enough to pay the daily running costs of the business) or unexpected changes such as a recession, new competition or changes in tastes and fashion.
Financial loss resulting in the entrepreneur not being able to afford the running costs and owing money to other investors or banks.
Lack of security - giving up a guaranteed income and job security

Question 12

A company is currently worth $9billion. £1 = $1.24. How much is it worth in £ ?

Answer 12

£7.3bn

Question 13

What are the benefits of being a social enterprise?

Answer 13

Improve the image of the company and attract more customers or better workers.

Question 14

What do you need to do for an ‘explain’ question?

Answer 14

Make a point and provide 2 linked strands

Question 15

Explain how starting a business can be risky

Answer 15

The business could fail - the business could encounter cash flow problems, which could lead to financial loss and the collapse of the business.

Question 16

Explain one reward of starting your own business

Answer 16

You get to be your own boss, this gives you the opportunity to keep the profits, which leads to you having more money. Also, having control of your business allows you to make important decisions yourself, which could make the product/service better.

Question 17

What are the purposes of business activity?

Answer 17

To produce goods and services
To meet customer needs
To add value

Question 18

How do you add value to a business

Answer 18

Branding
Convenience
Quality and design
Unique selling points

Question 19

Explain 1 advantage of having a USP

Answer 19

A unique selling point refers to an original feature that distinguishes a product/service from another. It allows the business to charge more and increase the profit margin.

Question 20

Explain 1 method of adding value

Answer 20

Building a strong brand / improving branding. This would make the product/service more desirable. Good branding encourages people to buy more because it makes the business more trustworthy, which would lead to more profit.

Question 21

How can you plan and how will this benefit the business

Answer 21

Planning will help minimise risks, making the business more likely to succeed. E.g.
Predict how much you need to sell to make a profit
Predict how many people you will need to employ and the cost of this
Where to base the factory.

Question 22

What are the objectives that a good brand will achieve

Answer 22

Clearly deliver the message 
Confirms credibility
Emotionally connects your target prospects with your product/service
Motivates your buyer to buy
Creates use loyalty