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

Answer: Enterprise refers to the process of starting and running a new business, involving risk-taking, innovation, and organization to meet market needs.

Question 2: List three qualities that are important for an entrepreneur to succeed.

Answer: Creativity, determination, risk-taking ability.

Question 3: Explain the difference between an 'entrepreneur' and a 'business owner'.

Answer: An entrepreneur is someone who starts and innovates new business ventures, often taking risks and creating opportunities. A business owner may simply run an existing business, which may or may not involve innovation or risk-taking.

Question 4: Describe two ways in which entrepreneurs can identify new business opportunities.

Answer: By observing gaps in the market or unmet customer needs, and by recognizing emerging trends or technological advancements that can be exploited.

Question 5: Discuss the benefits of enterprise to the economy.

Answer: Enterprise creates jobs, stimulates economic growth, encourages innovation, and increases competition, which can lead to better products and services.

Question 6: Identify and explain two risks faced by entrepreneurs when starting a new business.

Answer: Financial loss if the business fails, and reputational damage if the venture does not succeed or faces public criticism.

Question 7: Draw a simple sketch of an entrepreneur's typical workspace or environment. Label any three items that might be found there.

Answer: A correct sketch would include a desk, a computer or laptop, and a phone. Labels should clearly identify these items.

Question 8: Explain why innovation is important for an enterprise to remain competitive.

Answer: Innovation allows enterprises to develop new products or improve existing ones, attract more customers, and adapt to changing market conditions, helping them stay ahead of competitors.

Question 9: Describe the role of risk-taking in entrepreneurship.

Answer: Risk-taking involves making decisions that could lead to success or failure, and is essential for entrepreneurs to seize new opportunities and innovate.

Question 10: Identify two sources of funding that an entrepreneur might use to start their business, and explain briefly how they work.

Answer: Bank loans, which involve borrowing money that must be repaid with interest; and angel investors, who provide capital in exchange for ownership equity or a share of profits.