Business studies Flashcards
A good or service which is essential for living
Need
Machinery is an example of this production
Capital
This is an example of a natural resource
Wood
Entrepreneurs have this
Ideas
This term is used to describe when there are not goods and services to meet consumers want
Scarcity
This term is used to describe when there are not goods and services to meet consumers want
Scarcity
This type of consumer good can be used over and over again
Durable
This type of consumer good can be used over and over again
Durable
Business activity in this sector takes natural resources and converts them into finished goods
Secondary
This describes economics which are both private and public sectors
Mixed
Characteristic of successful entrepreneurs
Innovative
Governments might provide these to support business startups
Grants
One method of measuring the size of a business
Economic of scale
A new business should have one of these
Plan
A business should have one of these
Plan
Poor cash flow management might be a reason why this happens to some business
Fail
Opportunity cost
A benefit lost while choosing a choice
Identify two advantages to a business of specialization
-It helps. Workers concentrate on one specific task.
-The business grows faster
Added value
Selling a product more than it costs
Difference between private and public sector
-Public sector is an economy controlled by the government, whereas private sector is an economy controlled by an individual
Public sector provides service to the public
Private sector funded through private investments and sales
Example of capital goods
Missionary,tools, buildings, vehicles
The four factors of production
Land, labor, capital,enterprise
Consumer goods
Products which are sold to customers(physical good, tangible goods)
Difference between durable and non-durable
-Good that can be used over and over again
-Good that can only be used once
Customer service
Product which are also sold to the public, but they cannot be seen or touched in tangible example order, assistant, returns and refunds(intangible)
Capital goods
Products, which are sold to other businesses to help in their production process
Branding
Is creating a unique idea of production
Example of primary sector
Mining, farming, fishing
example of Secondary sector(turning raw material into finished goods)
Manufacturing,construction
Example of Territary sector(providing service to a final customer)
Shops, restaurants, banks
Difference between primary sector, and secondary sector business activities
Primary sector: harvest, natural resources
Contributes to economies
Secondary sector : produces raw materials into finished goods.
Add more value to the ram materials
Examples of measuring business size
Capital employed
Value Of output
Number of employees
Why do owners want to expand their business?
Increase in profit
Increasing market share
Economic of scale
Greater power to control the market
Different ways businesses can grow
Internal
External
Internal growth
Buying more machines
Developing new product
Finding new markets for its products
External growth(when a business merge with or takes over another business)
Horizontal integration
Forward Vertical integration
Backward vertical integration
Conglomerate integration
Conglomerate
The bringing together of two businesses who in are completely different industries
Horizontal integration
Brings together two businesses in the same industry
Forward Vertical integration
Brings together two businesses in the same industry, but one is the customer of the other
Ex: shoe manufacturer, and shoe retailer
Backward vertical integration
Brings together two businesses in the same industry, but one is supplier to the other
Example:Chocolate manufacture, and a cocoa producer
Factors affecting business growth
Owners choice
Market size
Access and availability
Market domination
Characteristics of a successful entrepreneur
Innovative
Self-motivated
Self confidence
Multi skilled
Strong leadership
Risk taker
Good at networking
Cause of business failure and why new business fail
Poor planning
Poor management
Poor choice of location
Poor marketing
Competition
Define entrepreneur
An individual who takes the financial risk of starting and managing a new business
Industrialization
The growing importance of secondary sector business activity
