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

Answer: Enterprise refers to the willingness and ability of individuals to start and run a new business, taking on risks to make a profit.

Question 2: Identify three qualities or skills that are important for an entrepreneur to possess.

Answer: Creativity, risk-taking ability, resilience, leadership skills, and decision-making skills.

Question 3: Explain two reasons why someone might choose to start their own business instead of working for an employer.

Answer: They may want more control over their work and income, and to pursue a business idea they are passionate about.

Question 4: Describe what is meant by 'adding value' in a business. Provide an example.

Answer: Adding value involves increasing the worth of a product or service, for example, by improving quality or offering additional features that make it more appealing to customers.

Question 5: List four types of business ownership, and briefly describe one.

Answer: Sole trader, partnership, private limited company (Ltd), public limited company (Plc). A sole trader is owned and operated by one person who keeps all the profits and is personally responsible for debts.

Question 6: Sketch a simple diagram illustrating the basic concept of a business enterprise. Label the key parts such as 'Entrepreneur', 'Resources', and 'Product/Service'.

Answer: A correct sketch would show an entrepreneur at the center with arrows pointing to resources (like raw materials, finance, labor) and a final product or service. Labels should clearly identify each part.

Question 7: Explain the difference between a 'good' and a 'service'. Provide an example of each.

Answer: A 'good' is a physical product that can be touched, such as a mobile phone. A 'service' is an intangible offering, like a haircut or a consultancy.

Question 8: Outline two ways in which an entrepreneur might reduce risks when starting a new business.

Answer: Conducting market research to understand customer needs and starting on a small scale to test the business idea before expanding.

Question 9: Draw a flowchart showing the stages an entrepreneur might go through from idea to opening a new business. Provide labels for each stage.

Answer: A flowchart with stages labeled as: Idea generation, Market research, Business planning, Securing finance, Setting up, Launching the business.