Business Revison Notes 1AS.1

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Business Revision Notes: 1AS.1
Enterprise
What is enterprise?
Willingness to undertake new ventures, initiative
Creativity to come up with new ideas and ways of doing things
Evaluate whether something is worth doing even with risks involved
To take advantages of new changes ­ methods, processes, demands in thing people want.
Willing to try and to learn from the mistakes
Braveness, daring, committed and motivated
The Nature of Business activity
Purpose of Business Activity
A business is any organization that uses resources to meet the needs of customers by
providing a product of service that they demand
Business activity at all stages involves adding value to resources, such as raw materials
and semi-finished goods, making them more desirable ­ to ­ the final purchaser of them
Without business, we would still be entirely dependent on the goods that we could
make or grow ourselves
They do this by sourcing scare resources such as raw materials [ inputs ] and turning them
into finished goods or services [outputs]
The Concept of Adding Value
A business adds value to the raw materials it uses to produce the good or service it sells. Added
value is one of the key objectives of any business. If a customer is prepared to pay a price that is
much greater than the cost of materials used in making or providing a good or service, then the
business has been successful in `adding value' .
The concept of valued added can be illustrated by an example taken from the building industry.

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The Nature of economic activity and the problem of choice
We live in a world of great wealth and great scarcity (shortage)
We have limited resources but unlimited wants, needs
Poor people are unable to find the basic requirement for life yet rich people may not be
satisfy all of their wants for luxury goods and services
[Inequalities ­ rich and poor]
It is the purpose of economic activity to provide for as many of our wants as possible ,
however with the shortage of…read more

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The Role of the entrepreneur
Qualities an entrepreneur is likely to need for success
Innovation and creativity
Multiskilled
Selfmotivated
Ability to bounce back from the worst situation
Passion
Confidence
Independence
Risktaking
Leadership skills
Ability to manage finance
Decisionmaking
Vision
Commitment
Consistency
Courage
Stability
Charismatic
The role of business enterprise in the development of a business
and a country
Impact Explanation
Setting up new business will create job for themselves
(entrepreneur) and others member in their family or friends.…read more

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Business start-up by offer goods and services that meet the
needs of local or regional market. However, some will expand
their operations to the export market, noticing that other
Exports market may not have the same advantage in capital goods
therefore they could improve their value of nationals export
and international competiveness.
Setting up a successful business will develop useful skills,
experience and confidence for an individual to continue
Personal Development expand new firm and new sector of business.…read more

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