Business in the real world Flashcards
Why do people set up businesses?
People want goods and services
Benefit society
Distribute goods
What are customers’ needs?
The things people can’t live without
What is the primary sector?
The primary sector produces raw materials.
What is the secondary sector?
The secondary sector manufactures goods
What is the tertiary sector?
these services can take a wide variety of forms and can exist to serve customers, businesses or a combination of both.
A entrepreneur has to be able to…
Identify business opportunities
Take risks
What is an entrepreneur?
A person who sets up a business
What is the business environment characterised by?
- Legislation
- The economy
- Technological advancements
- Environmental expectations
What are some good qualities of an entrepreneur?
Willing to take risks
Hardwiring
Organised
Innovative
What are the risks that entrepreneurs face when starting a new business?
Financial loss
Lack of security
Failure
What are some reasons to become a entrepreneur?
Financial rewards
Being their own boss being able to pursue an Interest at work
Which two Rs describe the upside and downside of starting a new business?
Risk
Reward
What does B2C mean?
Business to consumer
What does B2B mean?
Business to business
What are the four factors of production?
Land
Labour
Enterprise
Capital
What is a business?
An organisation exists produce goods or supply services to customers.
What are the 4 business functions?
Operations
Marketing
Human Resources
Finance
Who owns a limited company?
Shareholders
Who owns a sole trader business?
Owner
What is a stakeholder?
It is an individual or group of individuals that are affected by a business.
What are the 5 main stakeholders in a business?
Supplies
Employees
Local community
Customers
Which stakeholder usually has the biggest impact on a business?
The owner
What is unlimited liability?
The personal possessions of the owner are at risk if there are any problems in the business
What are the 4 different types of businesses?
Sole trader
Partnership
Public limited company
Private limited company
What is a sole trade?
It is an individual owning the business on there own
