1.11 The Dynamic Nature of Business

Business is dynamic. This means it is always changing. They make products (tangible) or provide services (intangible) for customers.

Keywords:

dynamic – always changing

obsolete – a product that is no longer used or out of date

entrepreneur – someone who creates a business, taking on financial risks with the aim of making a profit from the business

You need to know how ideas for new products come about:

  • changes in technology (ebay)
  • changes in what consumers want (wearable technology)
  • changes in tastes and trends (stand alone MP3 players are becoming obsolete)
  • original ideas (from research, spotting a gap in the market, adapting existing ideas)

Test yourself

Complete these questions to test your understanding of this lesson.