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Qualifications Edexcel GCSE Business

1.1 Enterprise and entrepreneurship

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Which reason best explains why businesses exist?
To satisfy customers' needs and wants
Which outcome of technological change leads directly to new business ideas?
Creation of new products or services
Why do changes in consumer tastes lead to new businesses?
They create demand for different products
What does it mean when a product becomes obsolete?
It is no longer wanted or useful
How can personal experience lead to a business idea?
By spotting everyday problems to solve
Which best describes an original business idea?
A completely new invention or solution
What does adapting an existing product involve?
Improving features to meet new needs
How does innovation help a business?
Gives a competitive advantage over rivals
Which example shows technology changing an industry?
Music moving from CDs to streaming
Why does internet shopping let new enterprises start easily?
It lowers costs for reaching customers
How do changes in society like health concerns affect businesses?
They push firms to adapt products
What happens when established companies fail to adapt?
They can lose customers and fail
Which phrase best defines business risk?
exposure to danger for business
What is a calculated risk?
acceptance of possible loss
Why do entrepreneurs take calculated risks?
seeking potential business rewards
Which option is a main business risk?
financial loss from insufficient cash
Which example best shows lack of security?
leaving a steady job for a start-up
What describes financial loss for a business?
business lacks cash to cover costs
What does the phrase 'cash is king' mean?
sufficient cash needed for operations
Which best describes business failure?
unable to meet debts or trade
Which is a common cause of business failure?
lack of customer demand
Which is an external factor that can worsen failure?
economic slowdown affecting sales
How can technology changes affect businesses?
create new types of risk
Who is most affected when a limited liability company fails?
investors, suppliers, and employees
What happens under unlimited liability?
owners risk losing personal assets
What best describes a business?
Offers goods or services for money
Which is an example of a physical good?
A physical product like a television
Which is an example of a service?
A haircut at a salon
Which statement best distinguishes a need from a want?
Essential for survival versus desirable extras
What is the main purpose of business activity?
To produce goods or services
What does meeting customer needs mean?
Satisfying or exceeding customer expectations
What is meant by added value?
Difference between input cost and selling price
How does branding add value to a product?
Creates a unique name or image
How does good design add value?
Makes product more attractive and useful
Why does high quality add value?
Suggests reliability, durability and good workmanship
How does increased convenience add value?
Saves customers time and effort
What is a unique selling point (USP)?
A feature that differentiates from competitors
Which best describes an entrepreneur's role?
Organises resources, makes decisions, takes risks