Basics Flashcards
What are the 4 factors of production
Land
Labour
Capital
Enterprise
What are the 4 factors of production
Land
Labour
Capital
Enterprise
What is the labourin the four faces of production
The human input in the production process
What is land un the 4 factors of production
Natural rescources available for production
What is enterprise in the 4 factors of production
Entrepreneurs organise factors of production and take risks
What is enterprise in the 4 factors of production
Entrepreneurs organise factors of production and take risks
What is caption in the 4 factors if production
Goods used in the supply of other products eg tech
How to add value to your products
Building a brand = reputation for quality- more demand - more sales
Delivering good service
Product features and benefits
Offering convenience- quick delivery
How to add value to your products
Building a brand = reputation for quality- more demand - more sales
Delivering good service
Product features and benefits
Offering convenience- quick delivery
What are the benefits of adding value
Charging a higher price
Creating a usp for competition
Keeps customer loyalty
What is a constraint in business
A limiting fsctor
What is a constraint in business
A limiting fsctor
What are examples of constraints in a business
Finance available
Legislation
Competition
Employees skill
What do businesses in the primary sector do
Extract natural rescources
What do businesses in the primary sector do
Extract natural rescources
What do businesses in the secondary sector do
Manufacturing raw materials into goods
What do businesses in the tertiary sector dk
Provide a service - haircut
What’s a private sector business
A business that are operated and owned by private individuals and companies and are generally run for profit
What is a public sector business
A business that is owned by the public and run by government
Generally run yo provide a service- NHS
What does unincorporated mean kn busines
That a individual or individuals have unlimited liability and is the same legal identity as the business
Sole traders , partnerships
Ehat does incorporated mean in business with examples
When the company has limited liability and isn’t the same legal identity as the business
Plc ltd
Advantages of being a sole trader
Cheap and easy to set up
100 perfect control
Keep all the profit
Financial info kept private
Advantages of being a sole trader
Cheap and easy to set up
100 perfect control
Keep all the profit
Financial info kept private
Disadvantages of being a sole trader
Harder to raise finance than other methods
Unlimited liability
No continuity
Advantages of being a partnership
Easier to raise finance than sole traders
Less profit sharing than companies
More skills, experience and ideas with more people working
Share debt
Financial info kept private
Disadvantages of being a partnership
Unlimited liability
Not as much continuity as companies
Less control than sole traders
Harder to set up than sole traders(deed of partnership)
Harder to raise finance than companies
Advantages of companies
Limited liability
Easy to raise finance
Continutity
Advantages of companies
Limited liability
Easy to raise finance
Continutity
Disadvantages of companies
Public disclosure of company infomation
Greater admin costs
Advantages of franchising for a. Franchiser
Recieve franchise fees and royalties
Easier management
Able to expand quicker
Franchisees can produce ideas for future success
Disadvantages of franchising for franchiser
May lead to negative reputation if not properly run
Less control of business
Advantages for frsbchisee
Takes advantage of well known brand
Lower risk as its a proven business concept
Receives national market
Disadvantages for franchisee of buying a franchise
Franchiser takes percentage of profit
Supplies bought from franchiser
Don’t have a lot of control of business
What is market share
Percentage if a market the a business has
What is market size
Total sales within a market
What is market growth
The percentage change in market size
What is market growth
The percentage change in market size
