1.1.1 The dynamic nature of business

What is a "Good"?

• A tangible object that satisfies customers wants and needs?

• An intangible act that a business carries out for you in exchange for money?

Which three (3) factors lead to the business environment being dynamic?

• Changes in the economy.

• Changes in consumer tastes.

• Changes in sales.

• Changes in technology.

Why do new business ideas come about?

• Changes in technology

• Changes in consumers wants and needs

• Products and services becoming obsolete

• Creating original ideas

• Adapting existing products/services/ideas

What does the term "Obsolete" mean?

• Something that is popular

• Something that meets the wants and needs of consumers

• Something no longer produced or used; out of date

• An intangible item offered for economic value

What is a service?

• A tangible object that satisfies customers wants and needs

• An intangible act that a business carries out for you in exchange for money

Which of the following are examples of "Goods"?

• A haircut

• A car mechanic

• A new tyre for a car

• A new water bottle

Which of the following are services?

• A new bag

• A personal trainer

• A new computer

• A bank account

Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:

• Services that have become obsolete

• Changes in consumer demand

• Changes in the interest rates

• Products that have become obsolete

An entrepreneur has developed a unique product to launch into the market. Which of the following best describes how this new business idea came about?

• Adapting an existing service

• Adapting an existing product

• Adapting an existing idea

• An original idea

When a new technology is developed a good business will see it as what?

• A way to confuse customers and sell them a product or service they don't need.

• An opportunity to develop products or services that use the new technology in new and interesting ways.

• A threat as it makes their product obsolete.

• A problem as the business isn't familiar with the new technology and won't know what to do with it.