levo
Log inStart

Enterprise and Entrepreneurship

The role of business enterprise

  • 3 things to know
  • Paper 1

Overview

The purpose of business activity, goods and services, added value and the five ways to create it, the unique selling point, and the three roles of an entrepreneur.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

State the three roles of an entrepreneur.

Key term

What is business enterprise?

Key term

State the purpose of business activity.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is business enterprise?

    Model answer

    Enterprise is spotting an opportunity and taking the initiative to turn it into a business. Enterprise involves taking a risk in the hope of a reward.

  2. 2

    State the purpose of business activity.

    Model answer

    Business activity exists to produce goods or services that meet customer needs. A business adds value along the way so that it can make a profit.

  3. 3

    What is the difference between a good and a service?

    Model answer

    A good is a physical product that can be touched, such as a bicycle. A service is an intangible activity done for the customer, such as a haircut.

  4. 4

    Define added value.

    Model answer

    Added value is the difference between the price a customer pays and the cost of the bought-in materials. Higher added value leaves more money to cover other costs and make a profit.

  5. 5

    A florist buys flowers and ribbon for £12 and sells the finished bouquet for £30. Calculate the value it has added.

    Model answer

    The florist has added £18 of value. £30 − £12 = £18.

  6. 6

    Name the five ways a business can add value.

    Model answer

    A business can add value through convenience, branding, quality, design and a unique selling point.

See the rest and revise

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.

1Closed book
2Open book
3Closed book

The 3-step method, run for you

Answer cold, learn it, then prove it stuck. Levo tracks the jump between your first attempt and your last.

Enterprise and Entrepreneurship
Spotting a Business Opportunity
Putting a Business Idea Into Practice
Making the Business Effective

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Revenue = price × .
quantitycostprofit

Blank Blitz makes facts automatic

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AGoods must be of satisfactory quality.
BGoods must be fit for purpose.
CGoods must be as described.

Build It gets the exam shape right

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Cash inflows means money coming into a business.
TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

721941163128510

Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Enterprise and Entrepreneurship, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

Start revising, £5 a monthSee how the method works

Or £46 a year, about £3.83 a month. Cancel anytime.