1.1 - The Purpose And Nature Or Business Flashcards
What is a business
A business is an organisation that producess a good or supplies a service
What is a good
A good is a physical product
What is a service
An intangiable product (you cannot touch it)
What is a consumer
A consumer is someone who uses goods or service from the business
What is an entrepreneur
An entrepeneur is someone who is willing to take the risks involved in starting a new businesss
Social enterprise
A business set up to help society rather than make profit
Opportunity cost
Opportunity cost is the sacrifice we make when we decide to do anything
What is the Primary sector
Made up of organisations that are at the first stage of production
What is the secondsry sector
Made up of organisations that are at the second stage of the production process
Tertiary sector definition
The final stage - made up of organisations that provide services
What are Interest rates
Interest rates refer to the cost of borrowing money or the reward for saving money
What is Inflation
The rate at which prices are increasing
