1.1 - The Purpose And Nature Of Business Flashcards
1
Q
What is a Business?
A
A business is an organisation that provides goods or services
2
Q
Why do people start a business?
A
- To fill a gap in the market
- To benefit society
3
Q
What is a good?
A
A tangible material/item that can be provided by a business like ebay
4
Q
What is a service?
A
An intangible action that a business provides
5
Q
What is the difference between needs and wants?
A
- Needs are things required in order to survive
- Wants are things that people would like to have but can survive without
6
Q
Factors of Production
A
- Land
- Labour - Staff
- Capital - Machinery, equipment, money
- Enterprise - Ideas & risk taking
7
Q
Primary Sector
A
Businesses that extract raw materials
8
Q
Secondary Sector
A
Where goods are manufactured from raw materials to finished goods
9
Q
Tertiary Sector
A
Businesses that provide services
(Estate Agents, Hairdressers)
10
Q
Entrepreneur
A
Someone who is willing to take risks to start a business
11
Q
Entrepeneur Characteristics
A
- Hardworking
- Organised
- Innovative
12
Q
Entrepeneur Objectives
A
- Be their own boss
- Flexible working hours
- Fill a gap in the market
