Business Theme 1

A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk?

• Inability to break even

• Lack of security

• Business failure

• Lack of independence

Sara decided to start-up a business as a personal trainer, due to her passion for fitness. Which of the following is the main reason behind Sara’s business idea?

• Earn more money

• Pursue an interest

• Be her own boss

• Work more flexible hours

Lack of overall planning and poor decision-making can lead to business failure. This is known as:

• Poor management

• Poor quality

• Poor understanding of the economy

• Poor sales levels

Which two of the following are examples of risk that can occur from business activity? Select two answers:

• Profit

• Lack of security

• Independence

• Business success

• Financial loss

Which two of the following increases the risk of business failure? Select two answers:

• Draws up a detailed business plan

• Produces goods that do not meet customer needs

• Makes a product that stands out from its competitors

• Fails to carry out comprehensive market research

• Offers exceptional customer service

When a business launches an updated product with new features, it is best described as adding value through

• Convenience

• Branding

• Quality

• Design

Which of the following statements best describes the term, unique selling point? When a business:

• Establishes a clear target market for its products

• Develops an aspect of a product that makes it different to its rivals

• Carries out market research effectively

• Produces a range of goods and services

Which of the following statements best describes the term, entrepreneur?

• Someone who buys a product from a business

• Someone who uses goods and services produced by a business

• Someone who works for a business

• Someone who is willing to take the risk involved in starting a business

In order to add value, local grocery stores often sell cheese that has already been grated for the customer. This adds value through:

• Convenience

• Branding

• Quality

• Customer service

Which of the following statements best describes the term, added value?

• When a product stands out from those of its competitors

• Making a product widely recognisable

• The difference between the cost of a product and its selling price

• Making a product convenient to use