3.1 Business Flashcards
What is a business
An Organisation that provides goods and services to customers that want or need them
What is a need
required for human beings to survive
what is a want
not required for a human to survive but makes life better some way
what is a good
physical products that are made or bought or sold
what is a service
activities that other people or business do for you
why would you start a business
new products
gap in the market
gain employment
be your own boss
earn income and make profit
provide a service
utilise a particular skill
what are factors of production
name the four factors
the inputs available to supply goods and services in the economy
Land
Labour
Capital
Enterprise
What is land
natural resources available for production
what is labour
human input into a production process
what is capital
goods in the supply of other products
what is enterprise
organsised factors and taking risks
what is opportunity cost?
the benefit forgone from the next best alternative
what is the primary sector
produce goods using natural resources extracted from the ground that are grown or collected
what is the secondary sector?
manufactured goods used to make other goods or services
consumer goods
what is the tertiary sector
provide services to other businesses and customers
what is the chain of production
the process that a product goes through from the primary sector to the tertiary sector
what are the functions of a business
marketing
finance
operations
HR
what is interdependence
the different departments of the business work together in order to make the business function properly
what external factors is a business affected by?
technological change
economic change
legal change
environmental expectations
healthy eating
personal services
ageing population
what is an entrepeneur
someone who creates their own business where there is a gap in the market
characteristics of an entrepreneur
perseverance
resilience
confidence
passion
innovation
courageous
objectives of an entrepreneur
make a profit
have success
wealth
achieve their goals
make people happy
improve products
what is an enterprise
another name for a business
the skill of turning an idea into a successful business
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