1.2 enterprise business + the economy Flashcards
1
Q
creative destruction
A
when businesses innovate in order to produce new, cheaper, or better products with wider market appeal (introducing strong competition)
2
Q
role of entreprenuer
A
- creative destruction
- making decisions to set up a business
- making decisions to expand the business
- selling the output for more than the cost (adding value)
3
Q
added value
A
difference between price of finished products and cost of inputs involved in making it
can be done thru:
- assembly
- marketing activity
- branding
- USP
4
Q
entrepreneurial motives
A
- profit
- independence
- flexibility + ability to work from home
- ethical stance
- social entrepreneurship
5
Q
factors of production
A
- land (raw materials)
- labour (human capital)
- capital (financial + physical)
- enterprise (creative idea or risk taken)
inputs used to produce goods/services
6
Q
specialisation
A
the way in which people, organisations and economies concentrate on specific economic activities, often because they have some advantage in that field
7
Q
division of labour
A
individuals specialising in one particular type of activity in the workplace
