1.1 The Role Of Business Enterprise And Entrepreneurship Flashcards
What is a business?
A business is an organisation which makes goods or provides a service
What are business goods?
Tangible products produced by a business
What are business services?
Intangible goods produced by business
What are basic needs?
Food, warmth, shelter, water
What are wants?
Luxury items, phones, laptops
What are the 4 factors of production?
Land, labour, capital and enterprise
What is land in the factors if business?
Natural resources
What is labour in the factors of business?
All mental and physical human effort
What is capital in the factors of business?
Manufactured goods/service and money
What is enterprise in the factors of business?
An entrepreneur is someone who organises the other 3 factors of production
What is the private sector?
Businesses that are owned and co trolled privately and aim to make a profit
What is the public sector?
-An organisation owned and controlled by the government and don’t make a profit
- Their main aim is to provide a good service and they are paid through taxes
What are the four main characteristics of an entrepreneur?
Creativity, risk taking, determination and courage
What is an entrepreneur?
Someone who runs, owns, and controls their own business.
Financial drawback for risk taking?
Life savings that are put into the business can be lost
Health drawback for risk taking?
The strain of being in charge or keeping up success can affect a person’s health
Strained relationships drawback for risk taking?
Risk taking can be time consuming and take a toll on the entrepreneurs mental health
Financial reward for risk taking
You can make a lot of money
Independence reward for risk taking
You get to be your own boss and feel independent
Self-satisfaction reward for risk taking
A business may develop out of making your ideas work
Changing customer habits reward for risk taking
Some entrepreneurs are rewarded by persuading buyers to change their buying habits
