Question 1: Define the term 'enterprise' in the context of business.

Answer: Enterprise is the ability and willingness to start and run a new business, taking on financial risks in order to make a profit.

Question 2: List three characteristics that are important for an entrepreneur to have.

Answer: Creativity, risk-taking, determination.

Question 3: Identify two reasons why someone might want to start their own business.

Answer: To be their own boss, to make a profit, to turn a passion into a business, to create jobs for others.

Question 4: Describe the difference between a service business and a manufacturing business.

Answer: A service business provides services to customers, such as hairdressing or cleaning, while a manufacturing business produces physical products that are sold to customers.

Question 5: Draw a simple diagram showing the relationship between a producer and a consumer.

Answer: The diagram should show a producer (e.g., a factory) producing goods and a consumer purchasing those goods, with arrows indicating the flow of products from producer to consumer.

Question 6: Explain what is meant by the term 'entrepreneurship'.

Answer: Entrepreneurship is the process of starting and running a new business, involving innovation, risk-taking, and management skills.

Question 7: Name two risks that an entrepreneur might face when starting a new business.

Answer: Financial loss, failure of the business.

Question 8: Sketch a simple plan for a new small business idea, including at least three key features or products/services offered.

Answer: The sketch should include a layout or concept of the business, such as a small cafe offering coffee, snacks, and Wi-Fi; or an online clothing store selling t-shirts, jackets, and accessories.

Question 9: Identify two benefits of being an entrepreneur.

Answer: Being your own boss, having the opportunity to make a profit, pursuing your passion.

Question 10: Explain why innovation is important for a new business to succeed.

Answer: Innovation helps a business to stand out from competitors, attract customers, and adapt to changing market needs.

Question 11: Describe what a social enterprise is and how it differs from a traditional business.

Answer: A social enterprise aims to solve social problems or meet community needs while making a profit, whereas a traditional business primarily focuses on maximizing profit for owners or shareholders.