Business In The Real World Flashcards
What is a business?
A business is an organisation which trades to make money, these come in all shapes and sizes
What is a product?
A product is anything that is capabke of satisfying customer needs, it is tangible and can be touched
What is a service?
A service is an act that a business person carries out for you in exchange for money. It cannot be touched
What are the 4 factors of production?
Land
Labour
Capital
Enterprise
What is it meant by “land”?
Somewhere to produce the goods eg. Farm
What is “labour”?
People to work in the business
What is capital?
Money to get the business started
What is Enterprise?
This is the drive or motivation from the owners to start a business
What is oppertunity cost?
Something that is given up in order to do something else
What are the reasons to start a business?
To produce good,to supply a service,to distribute products, to fulfil a business oppertunity
What is social enterprise?
A social enterprise is a business which has the objective of trading to help people or the planet, rather than making a profit.
What is the primary sector?
The primary sector extracts raw materials from the planet
What is the secondary sector?
In the secondary sector are manufactured from raw materials into finished goods
What is the tertiary sector?
The tertiary sector is all the support services for business
What is an entreprenur”
An entrepreneur can be defined as: A person who starts a business and takes on financial risk in the hope of making a profit
