1.1.3 The role of business enterprise

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

• Someone who works for a business

• Someone who buys a product from a business

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

• Someone who uses goods and services produced by a business

You start producing pre-cooked roast potatoes to sell to consumers from the potatoes that you have grown. What business purpose is this an example of?

• Adding value

• Meeting customer needs

• Producing goods

• Producing services

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

• Branding

• Convenience

• Quality

• Design

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

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

• Carries out market research effectively

• Establishes a clear target market for its products

• Produces a range of goods and services

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

• Customer service

• Branding

• Convenience

• Quality

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

In order to make its products stand out from those of its competitors, a small chocolate manufacturer produces organic, gluten free, chocolate bars. This is classed as adding value through:

• Customer service

• Branding

• Convenience

• A unique selling point

A benefit to a business of adding value is:

• More competition

• Can charge a higher price

• Fewer sales

• Charge a lower price

Whch fo the following are factors of production?

• Land

• Labour

• Capital

• Enterprise

One role of an entrepreneur is to organise resources. Which of the following statements best describes this role?

• The ability to take calculated risks

• Employing workers and buying equipment in order to produce goods

• The skill to think creatively

• The prospect of keeping all profits that are generated