1.1 - The Purpose And Nature Of Business Flashcards
Goods
A good is a physical product e,g a car, bike, sandwich
A tangible item
Business
A business is an organization that supplies a product or service
Entrepreneur
Is a person who takes a risk to create a business
Service
Something you buy which is intangible(you cant see it)
Consumer
Someone who uses a good
Social enterprize
Set up to help a group or individials
Customer
Someone who buys a product from a business
Interest
Money paid by banks as a reward to attract people to save with them
Interest rates
The cost of borrowing money or reward for saving it, expressed as a percentage
Inflation
Rate of which prices are increasing
Gross domestric product
Measures income earned in a countrys economy a year
Objectives of entreprenuers
1) Want to be their own boss
2) Want to keep profits to themselves
3) Unhappy with present job and want to do something different
Factors of production
Factors of production are the resources used to provide their goods or services
Enterprise
Skills of the people involved in the business identifying oppurtunities
Oppurtunity cost
The sacrifice we make whenever we decide to do anything
Primary sector
Organisations in first stage of production using raw materials such as oil, farms, fishing fleets
Secondary sector
At second stage of production, converting primary resources into products, manufacturers and printers
Tertiary sector
Final stage of production providing services, fast food stores delivery companies,
Land
Includes all the earths natural resources such as natural gas
Capital
The equipment factories and schools that help to produce a good or service
