Question 1: Define the term 'enterprise' and explain its importance in the UK economy.

Answer: Enterprise is the process of starting and running a business to make a profit. It is important in the UK economy because it creates jobs, encourages innovation, and contributes to economic growth.

Question 2: Identify three qualities that are important for an entrepreneur to have. Provide a brief explanation for each.

Answer: 1. Risk-taking – Entrepreneurs must be willing to take financial and personal risks to start and grow their business. 2. Creativity – They need innovative ideas to differentiate their products or services. 3. Perseverance – They must persist through challenges and setbacks to achieve success.

Question 3: Describe two advantages and two disadvantages of setting up a small business.

Answer: Advantages: 1. Flexibility – Small businesses can quickly adapt to market changes. 2. Personal Service – They often provide better customer service. Disadvantages: 1. Limited Resources – Small businesses may struggle with funding and staffing. 2. Market Competition – They face strong competition from larger companies.

Question 4: Explain the difference between a 'product' and a 'service' with two examples of each.

Answer: A product is a tangible item that can be seen and touched, such as a smartphone or a chocolate bar. A service is an intangible activity provided to customers, like hairdressing or cleaning services.

Question 5: Identify and explain two reasons why a person might decide to become an entrepreneur.

Answer: They may want independence and to be their own boss, allowing them to make their own decisions. They might also see an opportunity to meet a need in the market and make a profit from it.

Question 6: Draw a simple sketch of a business idea you have. Label the main features, such as the product or service offered, the target customer, and the location.

Answer: A correct sketch would include a rough outline of the business concept, with labels indicating the product or service, the target customer group, and the business location or premises.

Question 7: List three factors that can influence a person's decision to start their own business.

Answer: Factors include personal motivation or passion, opportunity in the market, and access to funding or resources.

Question 8: Explain the term 'risk' in the context of enterprise. Give an example of a risk an entrepreneur might face.

Answer: Risk in enterprise refers to the possibility of losing money, time, or effort when starting or running a business. An example is the risk of not making enough sales to cover costs.

Question 9: Describe what a social enterprise is and give an example of a social enterprise in the UK.

Answer: A social enterprise is a business that aims to improve social or environmental well-being while making a profit. An example is The Big Issue, which helps homeless people by selling magazines.

Question 10: Identify two skills that are important for entrepreneurs and explain how they help in business success.

Answer: Communication skills help entrepreneurs persuade customers and negotiate deals. Problem-solving skills enable them to find solutions to challenges and adapt to changes in the market.