1st Business Test Flashcards
What is a entrepreneur
An entrepreneur is who has a business idea, invests their own money and is willing to take risks and sets up their own business.
Why do people set up in business?
- To be their own boss
2.To earn more money
3.Have a new idea or service
4.They have been made redundant
5.They have a hobby and decide to develop it into a business
Where do entrepreneurs get their ideas from?
- Listen and talk to other people
2.Identifying what existing firms do badly
3.Something no one else is providing
4.Solve problems for other people
5.Develop a hobby
What are the 3 main needs?
1.Food
2.Water
3.Shelter
What is a want?
A want is something that we do not need to survive but it makes our lives more enjoyable and pleasurable.
What is a good?
A good is a physical product that we can see and touch.
What is a service?
A service is something that is done for us.
What is a Primary sector?
Businesses involved in the extraction of natural resources from above and below the earth’s surface eg farming, fishing, forestry, oil drilling and mining.
What is a Secondary sector?
Businesses involved in the manufacture of goods ie: turning raw materials into products, eg car manufacturing and house construction.
What is a Tertiary sector?
Businesses that provide a service to their customers, eg retail, hotels and banking.
What sector is fishing apart of?
Primary
What sector is Oil Drilling apart of?
Primary
What sector is Mackie’s manufacturing ice cream apart of?
Secondary
What sector is Codona’s Amusement Park apart of?
Tertiary
The risks of setting up a business?
1.The product may not sell
2.You may not be able to pay your bills
3.You may not be able to pay back all the money borrowed
4.You may not make enough profit to continue
5.Financial Risk
