ar1 revision: key words (1.1.1 - 1.1.3) Flashcards
Obsolete
Out of date/no longer in use.
Examples include CDs, DVDs, etc.
Entreprenur
Someone who creates a business/enterprise with the aim of making a profit whilst taking a financial risk.
Intrapreneur
Someone who creates an enterprise while also working a job that pays a regular salary.
Consumer
Someone who uses products/services.
Customer
Someone who buys products/services.
Demand
The number of units customers want and can afford to buy.
USP (Unique Selling Point)
An original feature of a product making it stand out from other competitors.
Original ideas
Ideas that have never been done before.
Investment
Putting money into a business.
Capital
Money a company needs to function and expand.
Factors of production (resources necessary for an enterprise):
Land
Labour
Capital
Entrepreneurship
Competitive advantage
A feature of a business helping it to succeed against rivals.
Dynamic nature of business
The idea that business is constantly evolving and changing because of external factors such as technology.
Resources
Things/people that can be used to help build/run a business.
Sales revenue
The amount of money that come in from a business’ sales.
Market research
The process of gathering information about the market and customer needs/wants to aid business/financial decisions.
Secondary = cheaper, less reliable and isn’t as personalised to the company (good for start-ups aiming to get a business loan).
Risk
The possibility that the entrepreneur will have lower than anticipated revenue.
Adding value
Selling at price higher than the cost through branding, design, quality, convenience and USPs.
Ways to add value
Convenience
Choice
Branding
Quality
Design
USP
