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

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2
Q

Why do people start a business?

A
  • To fill a gap in the market
  • To benefit society
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3
Q

What is a good?

A

A tangible material/item that can be provided by a business like ebay

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4
Q

What is a service?

A

An intangible action that a business provides

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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
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6
Q

Factors of Production

A
  • Land
  • Labour - Staff
  • Capital - Machinery, equipment, money
  • Enterprise - Ideas & risk taking
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7
Q

Primary Sector

A

Businesses that extract raw materials

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8
Q

Secondary Sector

A

Where goods are manufactured from raw materials to finished goods

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9
Q

Tertiary Sector

A

Businesses that provide services

(Estate Agents, Hairdressers)

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10
Q

Entrepreneur

A

Someone who is willing to take risks to start a business

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11
Q

Entrepeneur Characteristics

A
  • Hardworking
  • Organised
  • Innovative
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12
Q

Entrepeneur Objectives

A
  • Be their own boss
  • Flexible working hours
  • Fill a gap in the market
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