1.1 Flashcards
What are the four factors of production?
land
labour
capital
enterprise
What is a product?
A product is anything that is capable of satisfying customer needs. (car, x box, watch)
What is a service?
A service is an act that a business person carries out for you in exchange for money. (cleaner, hairdresser)
Obsolete services meaning?
Some services are no longer required because of changes in technology or new inventions. eg, getting a film developed.
Definition of obsolete?
It means a product that is no longer used or out of date. For example, we can make a product obsolete by replacing it with something better.
What are the chances of failure in a new startup in their first year?
20% fail
What are the chances of failure in a new startup after five years?
50% fail
What are the chances of failure in a new startup in their second year?
30% fail
What are the chances of failure in a new startup in their 10th year?
70% fail
What are 10 reasons why businesses fail?
Financial control
plans
management
Entrepreneurial mentality
marketing efforts
poor location
uncontrollable growth
experience
incorrect pricing
improper control
Definition of business rewards?
making a significant profit, being well known, benefit that it brings that owner.
Definition of business success?
This may mean : awards, fame, survival, growth or making more money for someone else.
Definition of added value?
The difference between what a business pays its suppliers, and the price it is able to charge for its product or service.
What 5 ways can you add value to the product or service?
quality
convenience
branding
design
unique selling point
definition of an entrepreneur?
Someone who is willing to take risks
