AS Spec Flashcards
Explain what is meant by enterprise and entrepreneur
An entrepreneur is a person who starts their own business. They come up with new ideas, take risks, and work hard to make their business successful.
An enterprise is a business or organization. It can be a small business with just a few employees, or a large corporation with thousands of employees.
Explain what is meant by the factors of production, land labor capital and enterprise
Land- this is natural resources, what lies below them in terms of minerals
Labor- all the Human Resources available
Capital- money, machinery, buildings, tools
Enterprise- the entrepreneur who organizes the other 3 factors
Evaluate the impact and importance of availability of factors of production for the stakeholders of a business
The availability of factors of production has a significant impact on the stakeholders of a business. Stakeholders are the individuals and groups who have an interest in the success of a business. These stakeholders include shareholders, employees, customers, suppliers, and the community.
Shareholders are interested in the profitability of the business. Employees are interested in job security and good working conditions. Customers are interested in the quality and price of the goods and services that a business produces. Suppliers are interested in the profitability of the business. The community is interested in the economic health of the business.
In conclusion, the availability of factors of production is essential for the success of any business. It has a significant impact on the stakeholders of a business, including shareholders, employees, customers, suppliers, and the community.
Explain the role of the entrepreneur in making business decisions
Entrepreneurs are the driving force behind business decisions. They are responsible for:
Identifying opportunities: Entrepreneurs spot gaps in the market and come up with new ideas for products or services.
Taking risks: Starting a business is risky, but entrepreneurs are willing to take the chance of failure in order to achieve success.
Making decisions: Entrepreneurs make all the important decisions for their business, such as what products to sell, how to price them, and how to market them.
Managing resources: Entrepreneurs are responsible for managing the resources of their business, including money, people, and equipment.
Leading others: Entrepreneurs often have to lead a team of people, which means making decisions about hiring, training, and motivating employees.
In short, entrepreneurs are the heart and soul of a business. They are the ones who make things happen.
Evaluate the impact and importance of entrepreneurial activity for the stakeholders of a business
Economic growth: Entrepreneurs create new businesses, which can lead to job creation and economic growth.
Innovation: Entrepreneurs are often at the forefront of innovation, developing new products and services that can improve people’s lives.
Competition: Entrepreneurs can increase competition in the marketplace, which can lead to lower prices and better quality products and services.
Social change: Entrepreneurs can help to address social and environmental problems.
distinguish between primary, secondary and tertiary
organisations
Primary Organizations
Definition: Businesses that extract or harvest natural resources.
Examples: Farming, fishing, mining, forestry.
Key point: They provide the raw materials for other industries.
Secondary Organizations
Definition: Businesses that process raw materials into finished goods.
Examples: Manufacturing, construction, food processing.
Key point: They take the raw materials from primary industries and turn them into products we use.
Tertiary Organizations
Definition: Businesses that provide services to consumers and other businesses.
Examples: Retail, banking, healthcare, education, transportation.
Key point: They focus on providing services rather than producing goods.
distinguish between private, public and third sector
organisations
Private Sector Organizations
Ownership: Owned and operated by private individuals or companies.
Goal: Make a profit for the owners.
Examples: Businesses, corporations, partnerships.
Public Sector Organizations
Ownership: Owned and operated by the government.
Goal: Provide essential services to the public.
Examples: Schools, hospitals, police departments.
Third Sector Organizations
Ownership: Non-profit organizations that are not owned by the government or individuals.
Goal: To improve society and help people in need.
Examples: Charities, non-profit organizations, social enterprises.
distinguish between local, national and international
global markets
Local Market
Definition: A market that operates within a specific geographic area, such as a town, city, or region.
Examples: Local grocery stores, restaurants, and small businesses.
Key point: Businesses in local markets cater to the needs and preferences of customers in their specific area.
National Market
Definition: A market that operates within a specific country.
Examples: National retail chains, banks, and car manufacturers.
Key point: Businesses in national markets cater to the needs and preferences of customers across the entire country.
International Market
Definition: A market that operates across multiple countries.
Examples: Multinational corporations, such as Apple, Coca-Cola, and Toyota.
Key point: Businesses in international markets cater to the needs and preferences of customers in different countries.
distinguish between a national and multinational
business
National Business
Operates in one country only.
Sells its products or services in that one country.
Examples: Local restaurants, grocery stores, and small businesses.
Multinational Business
Operates in multiple countries.
Sells its products or services in multiple countries.
Examples: McDonald’s, Coca-Cola, and Toyota.
