1.1 - the purpose and nature of business Flashcards
what is a good?
a physical product
what is a service?
an intangible product
what is a customer?
someone who buys a product from a business
what is a consumer?
someone who uses goods and services produced by a business
what is an entrepreneur?
someone who will take risks to start a business
what is an entrepreneurship?
the ability to be an entrepreneur
what is an enterprise?
another word for a business
what is a social enterprise?
a business that is set up to help society
what are resources?
the inputs that businesses use to provide their goods or services
what is interest?
the money paid by banks as a reward to attract people
what is inflation?
the rate at which prices are increased
what is gross domestic product?
it measures all the income earned in a country’s economy in a year
what is a successful business?
when they satisfy customers wants and needs
5 advantages of an entrepreneur
- be their own boss
- keep all the profits of the business
- interest or hobby becomes a business
- satisfied for being successful
- time flexibility of working for their own business
3 factors of production and what they mean
land - physical site or used site
labour - number of staff
capital - equipment
what is opportunity cost?
the sacrifice made for the business
characteristics of entrepreneurs
- innovation (good at spotting opportunities)
- risk taker
- hard working / determined
- organised
primary sectors
organisation at the first stage of production and use raw material
secondary sector
second stage of product , using primary resources and covert them into products
tertiary sector
final stage , organisations that provide services
quaternary sector
research and development - STEM
technology change
creates new products and market
economic change
interest rate change,inflation and gdp change
interest rates
change in cost of borrowing money form banks
