Business Activity Flashcards
What are the factors of production?
Land
Labour
Capital
Enterprise
What is land?
The natural resources which the business uses
Eg. Plot of land, coal, diamonds…
What is labour?
The workforce of the business
Eg. Human resources, employees
What is capital?
The man made resources (assets of the business)
Eg. Finances, machinery etc
What is enterprise?
Where the entrepreneur will use land, labour and capital to achieve a business idea producing goods and services
What are the sectors of Activity/industry?
Primary
Secondary
Tertiary
Quarternary
Primary sector?
Compromises of businesses involved in taking natural resources from the land, industries such as coal mining
Secondary sector?
Consists of businesses which use resources to make or build their products, such as construction firms
Tertiary sector?
Made up of all the firms which provide services rather than goods. This includes banking, hairdressing
Quaternary sector?
Based around organisations that provide information, especially to businesses. This includes IT, research and development, consultancy services
What is wealth creation?
Business activity generates wealth by adding value to goods and services. A country’s economic output is measured by its Gross Domestic Product
What is the Business cycle?
The amount of production that takes place.
Boom, recession, slump, recovery
What are the support organisations?
- Financial support
- Financial advice
- Legal advice
- Networking/contacts
- Office space
- Mentoring
What is financial support?
They offer financial support for start-up businesses. This means that they can offer grants and soft loans at low interest rates
What is financial advice?
Offer start up businesses financial advice which means that they can offer them advice on how and where to source finance to fund expansion. This means that they can also offer advice on income statements
