Unit 1.1.3

The three main roles of business enterprise are? (3 answers)

• To produce goods or services

• To meet customer needs

• To make money

• To add value

Goods are tangible items which businesses offer to customers, meaning they can be physically touched and taken away

• True

• False

It’s crucial that businesses invest in ______ ________ to develop an understanding of the wants and needs of their target market

• Market research
• Sales revenue

• Physical stores

• Competitor's products

Which one isn't an example of a customer need which a business may need to meet?

• Availability

• Customer service

• Price

• Added value

The term ‘added value’ means a business sells a product or service for less than the cost of producing it. (1 answer)

• True

• False

Alongside producing products from raw materials, there are several other ways that a business can add value to its products and services, these include? (3 answers)

• Branding

• USP

• Convenience

• Price

A business can add value through the ______ of its products such as the features they provide customers or the way the product is presented e.g. the aesthetic look.

• Design
• Convenience

• Quality

• Branding

Which formula is the correct way to calculate the added value?

• Cost price - selling price

• Selling price - cost price

• Selling price - expenses

• Cost price + selling price

The three key roles of an individual entrepreneur in business are? (3 answers)

• Organising resources

• Making business decisions

• Minimising risk

• Taking risks

Which two are examples of high-level business decisions that an entrepreneur could face? (2 answers)

• What content should I post on the business' social media accounts today?

• Should I outsource labour or hire in-house?

• Should I expand the business or not?

• Should I reduce the price of older stock to increase sales?