Business and its environment Flashcards
What is the purpose of business activity?
To satisfy people’s needs by using resources to add value through the production of goods and services.
Name the three key business functions.
- identifying customer needs 2. resource acquisition 3. production
What are the four factors of production.
Land, Labour, Capital, Enterprise
Define adding value in a business context.
selling goods at a higher price than the cost of raw materials, creating profit.
What is scarcity in economics.
limited resources leading to insufficient good for satisfying all wants.
What is opportunity cost.
The next best alternative that is forgone when making a decision
What are the common reasons for business failure.
poor record keeping, lack of cash flow, insufficient management skills
describe a local business
operates in a specific area and typically does not seek expansion
what is a multinational business
a business with production or sales operations in multiple countries
what role do entrepreneurs play in business success
they start businesses with innovative ideas and are responsible for generating ideas, managing operations, and taking risks.
name three qualities of successful entrepreneurs
innovation, commitment and self motivation, multi-skilled
what is intraprenuership
the act of fostering entrepreneurial qualities within an existing business to promote innovation and growth
list some common barriers ot entreprenuership.
lack of opportunities, limited personal savings, poor business plans, no trading record
what are the barriers to obtaining capital for entreprenuers
limited personal savings, lack of knowledge about funding, no trading record, poor business plans
what are the benefits of entrepreneurship to a country’s economy
employment creation, economic growth, business survival and growth, innovation, exports, personal development, increased social cohesion
