1.1 The Purpose And Nature Of Businesses Flashcards
Good
A physical product, such as a car
Service
An intangible product, such as a bus journey
Customer
Someone who buys a product from a business
Consumer
Someone who uses goods and services produced by a business
Entrepreneur
Someone who is willing to take the risks involved in starting a new business
Entrepreneurship
Refers to the ability to be an entrepreneur- To take risks to develop a business idea
Social Enterprise
A business that is set up to help society rather than make a profit, charity etc.
Resources
Are the inputs that businesses use to provide their goods or services
Enterprise
Essensially another word for business
Interest
Is the money paid by banks as a reward to attract people to save with them
Interest rate
Refers to the cost of borrowing money or the reward for saving money, expressed as a percentage
Inflation
Refers to the rate of which prices are increased- money is ‘worth less’
Gross Domestic Product (GDP)
Measures all the income earned by a country’s economy in a year