Business paper 1 Edexcel Exam
Questuion and Answers.
Enterprise - ANSWER-Process of identifying new business oppurtunties and then taking
advantage of them.
Good - ANSWER-a physical item that can be touched
Service - ANSWER-Non tangible but involves action performed by other people to aid
the customer
Customer needs - ANSWER-Providing goods and services that people will want to buy
Adding value to a product - ANSWER-Business finds a way to improve the product so
more customers are willing to pay more for it compared to competitors price
How to add value to a product - ANSWER-- make it more convenient for customers to
get or use
- build a good brand image
- prove product design and quality
- give product a unique selling point
Benefits of building a good brand image - ANSWER-Customers are willing to spend
more money on the product as they'll recognise the brand and know its trustworthy and
desirable
Unique selling point - ANSWER-Any aspect of a product that makes it stand out form
those offered by rival businesses
How do new business ideas come about? - ANSWER-- adapting existing products
- changes in technology (brought apps)
- new original ideas
- changes in customer wants
Entrepenuer - ANSWER-Someone who takes on the risks of enterprise activity
To successfully run a business entrepreneurs must ... - ANSWER-Take risks
Make business decisions
Organise resources
Organising Resources (Entrepreneur role) - ANSWER-Makes sure business has all the
right resources at the right time and allows them to also plan for the future
, What is a risk an entrepreneur takes - ANSWER-Giving up their job and investing
money that they could lose if the business fails
Risks of running a business - ANSWER-financial loss, lack of security, business failure
Rewards of running a business - ANSWER-Business success, profit, independence
Usefulness of understanding the Market - ANSWER-- allows you to see size of market
- see how well they are performing in it
- see there market share
- seeing competitors
What does competition affect - ANSWER-Price
Customer service
Quality
Product range
Location
Affect of price - ANSWER-Customers will often want to pay less for a given product
however if a business reduces the price of their products it'll reduce the amount of profit
made per product sold
Affect of customer service - ANSWER-Good customer service will attract customers
making them more willing to pay more money for a product as if you have bad customer
service customers will be put off your business
Affect of quality - ANSWER--Offering better quality products makes customers more
satisfied and this will make the business more competitive even if its products are
expensive
- can be expensive as they'll spend a lot of money of déc loping high quality products or
on promotional quality
Affect of product range - ANSWER-Having a large range of products makes the
business more attractive to the customers and convient as it sells more type of a
product
Affect of location - ANSWER-Customers are more likely to buy form a business that
sells it products in a convient place as they wont have inconvienive of travelling or
waiting for the product
market research - ANSWER-The activity of gathering information about consumers'
needs and preferences.
Benefits of market research - ANSWER-- reduces risks
- able to accurately predict future trends and increases chances of success
- spot a gap in market
Questuion and Answers.
Enterprise - ANSWER-Process of identifying new business oppurtunties and then taking
advantage of them.
Good - ANSWER-a physical item that can be touched
Service - ANSWER-Non tangible but involves action performed by other people to aid
the customer
Customer needs - ANSWER-Providing goods and services that people will want to buy
Adding value to a product - ANSWER-Business finds a way to improve the product so
more customers are willing to pay more for it compared to competitors price
How to add value to a product - ANSWER-- make it more convenient for customers to
get or use
- build a good brand image
- prove product design and quality
- give product a unique selling point
Benefits of building a good brand image - ANSWER-Customers are willing to spend
more money on the product as they'll recognise the brand and know its trustworthy and
desirable
Unique selling point - ANSWER-Any aspect of a product that makes it stand out form
those offered by rival businesses
How do new business ideas come about? - ANSWER-- adapting existing products
- changes in technology (brought apps)
- new original ideas
- changes in customer wants
Entrepenuer - ANSWER-Someone who takes on the risks of enterprise activity
To successfully run a business entrepreneurs must ... - ANSWER-Take risks
Make business decisions
Organise resources
Organising Resources (Entrepreneur role) - ANSWER-Makes sure business has all the
right resources at the right time and allows them to also plan for the future
, What is a risk an entrepreneur takes - ANSWER-Giving up their job and investing
money that they could lose if the business fails
Risks of running a business - ANSWER-financial loss, lack of security, business failure
Rewards of running a business - ANSWER-Business success, profit, independence
Usefulness of understanding the Market - ANSWER-- allows you to see size of market
- see how well they are performing in it
- see there market share
- seeing competitors
What does competition affect - ANSWER-Price
Customer service
Quality
Product range
Location
Affect of price - ANSWER-Customers will often want to pay less for a given product
however if a business reduces the price of their products it'll reduce the amount of profit
made per product sold
Affect of customer service - ANSWER-Good customer service will attract customers
making them more willing to pay more money for a product as if you have bad customer
service customers will be put off your business
Affect of quality - ANSWER--Offering better quality products makes customers more
satisfied and this will make the business more competitive even if its products are
expensive
- can be expensive as they'll spend a lot of money of déc loping high quality products or
on promotional quality
Affect of product range - ANSWER-Having a large range of products makes the
business more attractive to the customers and convient as it sells more type of a
product
Affect of location - ANSWER-Customers are more likely to buy form a business that
sells it products in a convient place as they wont have inconvienive of travelling or
waiting for the product
market research - ANSWER-The activity of gathering information about consumers'
needs and preferences.
Benefits of market research - ANSWER-- reduces risks
- able to accurately predict future trends and increases chances of success
- spot a gap in market
