3.1.1Purpose And Nature Flashcards
What is a business?
It is an organisation that exists to provide goods and services
What are goods OTP
- Objects
- Tangible
- Produced and consumed
What are services AIP
- Activities
- Intangible
- Provided by other businesses
Examples of services
- Transport
- Dentist
- Dry cleaning
- WiFi
- Hair salons
Examples of goods 🛍
- Food
- Clothing
- toys
- Animals pets
- Technology
What are needs
Needs are goods we need to consume to survive
What are wants
Wants are goods and services that we would like but are not essential to live.they are luxuries 🧁🥰🥳🍬🍪⛴
Examples of needs
Shelter 🕳 Clothes👕 Food🍯 Air 🌪 Water💧
Examples of wants
Technology 💻 Smart watch⌚️ Beee🐝 Pupppppppy🐶 Nintendo 🤗👾
How to satisfy customer
Identify their wants and needs
Purpose of business Please Pet Sonny Fish Dog
- Producing goods
- Providing a service to benefit others
- Fulfilling a business opportunity
- Distributing objects
What is a social enterprise
Social enterprise is a business that does not aim to make profits but improving people’s lives
Opportunity cost
Sacrificing one thing in order to achieve the other
Characteristics of an entrepreneur
- Hardworking
- organised
- innovative
- risk taker
- motivated
What are the three business sectors
Primary Secondary Tertiary
Describe primary business
Producing raw materials which are extracted from nature🌳🌲🌵
Describe secondary business
Manufacturing goods which are made from raw materials and turned into finished goods. This sector is also involved in construction 🔨
Describe tertiary business
Producing services. Also include businesses involved in the distribution process
Examples primary business
- Fishing
- Mining
- Oil exploration
- Farming
Examples of secondary businesses
Car manufacturers 🚗 Steel Clothing maker Builder ⛑
Tertiary business examples
Shops🛍 Transport 🚖 Hairdresser 💇🏽♀️ Baking 👨🏽🍳 Banks 🏦 Retail
Factors of production
Land Labour Capital Enterprise
tele factors
- Technology-online shopping, advertisements, interaction with customers, working from home
- Economy- tax vat, consumer spending
- Legislation- laws, e.g. rule of 10pm curfew
- Environment- the pollution and just consideration,
what is land
LAND- any natural resources, non-renewable- gas, oil, coal. Renewable power such as wind/waterpower or wood. Wind turbine
what is labor
LABOUR- work done by people, physical or mental effort. Builder physical effort. Architect mental effort since you have to think.
what is capital
CAPITAL- machines, equipment and tools, vehicles buildings. Tools you use to produce the product
what is enterprise
ENTERPRISE – the innovator, taking risks, using all the other factors of production to create products. Like they employ workers. Farmer, tractor capital, land the farm, labor driving the tractor.
characteristics of an entrepreneur
(main ones )
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- hard working
- innovative
- organised
- willing to take risks
- motivated
why might someone want to set up their own business
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- flexable working hours
- earn more money
- be their own boss
- gap in the market
- dissatisfaction with current job
- persue an intrest
what does hardworking mean
- being commited
- not giving up
- putting your all into something you find important
- investing time
- sacraficing things in orger to complete something
what does innovative mean
- being creative
- coming up with something new and unique
- original
- hasnt been done or stands out
what does organised mean
- having orderly and clear idaes
- have a propper and easy to folow plan
- know what you are doing
- also an orderly work space
why is being innovative important to an entrepreneur
- they are more likely to be noticed and stand out more
- people want new things all the time and that’s a good way of capturing attention
what is willing to take risks
- the probability of a business being successful on its forst set up is unlikely so the risk is investing time and money.
- however the outcome is not always bad
why is hardworking important to an entrepreneur
- the end result will not be as impressive
- if the good or service does get into the market place you will give the impression you are not commited
- what you put in you get out
why is being organised important to an entrepreneur
- ideas won’t be presented clearly
- confusion can happen
- you ay miss a vital element
- if you are not organised you may not be able to do
