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Flip to reveal answersState one financial opportunity of starting a business.
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All 15 Flashcards — Opportunities of a new business
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Question
State one financial opportunity of starting a business.
Answer
Potential for profits and building wealth/assets.
💡 Hint
Money-related rewards.
Question
State one financial and one personal opportunity of starting a business.
Answer
Financial: profits. Personal: independence/being your own boss.
💡 Hint
Balance categories.
Question
What is meant by a market opportunity?
Answer
A market opportunity is a chance to meet customer needs or wants better than existing businesses, often due to gaps, trends, or technology.
💡 Hint
Opportunity = unmet/changed demand.
Question
Give one example of a gap in the market creating a new business opportunity.
Answer
If a town has no affordable healthy lunch options, a new salad bar can meet that unmet need.
💡 Hint
No existing supply.
Question
State one personal opportunity of starting a business.
Answer
Independence and being your own boss (also flexibility and pursuing passion).
💡 Hint
Personal reward.
Question
What is one benefit of first-mover advantage?
Answer
It can capture market share early before competitors enter.
💡 Hint
Be first, gain share.
Question
How can new technology create opportunities for new businesses?
Answer
Technology can enable new products/services or cheaper delivery methods, creating markets that did not exist before.
💡 Hint
Tech enables new solutions.
Question
How can starting a business benefit the community?
Answer
It can create employment and provide new or improved goods/services.
💡 Hint
Jobs + value for society.
Question
State one way consumer trends can create opportunities.
Answer
Changing preferences (e.g., healthier diets) create demand for new products/services (e.g., plant-based foods).
💡 Hint
Trends shift demand.
Question
What is meant by capital gains for an entrepreneur?
Answer
Capital gains are the increase in value of the business that can be realized if it is sold.
💡 Hint
Sell later for more.
Question
State one community benefit of new businesses.
Answer
They create jobs and increase choice for consumers.
💡 Hint
Jobs + choice.
Question
Define first-mover advantage.
Answer
First-mover advantage is the benefit gained by being the first business to enter a market, helping it build brand recognition and capture market share early.
💡 Hint
Be first.
Question
State two possible benefits of first-mover advantage.
Answer
Benefits include early brand recognition and customer loyalty (also setting industry standards).
💡 Hint
Early lead.
Question
State one reason entrepreneurship can increase personal satisfaction.
Answer
Entrepreneurs may feel achievement from building something and solving customer problems.
💡 Hint
Non-financial reward.
Question
Exam tip: When asked to discuss opportunities, what should you also mention?
Answer
Briefly acknowledge that opportunities come with risks/challenges (covered in the next section).
💡 Hint
Balance your answer.
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Full study notes for Opportunities of a new business
Topic 1.1 hub
What is a business?
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