Business in the real world Flashcards
What is a good
A good is a physical item
What is a service?
Actions performed by other people to help aid the customer
Give 4 reasons why a business may be set up
.When someone starts making a good or service that they think customers will want to pay for
. To distribute goods e.g. buy products from manufacturers then sell them
.To benefit other people(non-for- profit organisations)
.When a business opportunity is found
What is the primary sector?
Sector which produces raw materials (e.g. natural resources)
What is the secondary sector?
Sector which manufactures goods (e.g. building and construction industry)
What is the tertiary sector?
Sector which provides services (e.g. schools, advertising for another business etc.)
What is the name of someone who wants to start up their own business
An entrepreneur
What is enterprise?
Identifying an opportunity then taking advantage of it
Give an example of an enterprise activity?
starting up a new business or helping with an existing one
Give an advantage of being your own boss
.Flexible working hours
.You decide the tasks which you have to do
Give reasons why someone may decide to be an entrepreneur
.Financial reasons
.When a gap in the market is identified
.Wanting the independence of being your own boss
.Having an interest
.Being dissatisfied with your current job
Give 4 characteristics an entrepreneur must have
. Hard-working
.Organised
. Innovative
.Have a willingness to take a calculated risk
Why should entrepreneurs be organised?
To make a business plan for the business and also plan for the future
Why should an entrepreneur be innovative?
To come up with new ideas and think of solutions to problems
Name the 4 factors of production (4 sections of resources)
.Land
.Labour
.Capital
.Enterprise
Give examples of land resources
. Territory .Non-renewable Renewable .Materials extracted by mining .Water .Animals found in an area
What is labour?
Work done by people who contribute to the production process
What is capital?
.Equipment, factories and schools that help to produce goods or services, different from land as it has to be made first
What is enterprise(factors of production)?
. People who take risks and create things from the other three factors of production.
What is opportunity cost
.The benefit given up in order to do something else
What is an entrepreneur?
Someone who takes on the risk of enterprise activity
Describe a sole trader business?
A sole trader business has just one owner
Give examples of sole trader business’s
Hairdressers, plumbers newsagents and fishmongers
Give 3 advantages of sole trader business’s
They’re easy to set up, which means they’re great for start-up businesses
.You get to be your own boss
.You alone decide what happens to any profit