Business Studies Topic 1 And 2 Flashcards
What is a need ?
A need refers to something essential in everyday life like water or shelter .
What is a want ?
A want refers to something that people desire or with for but is not essential in everyday life like donuts.
What is a business?
A business is an organistation which trades to make money these come in all shapes and sizes.
What are two examples of a business ?
A big supermarker like Asda.
An electrician.
What is a product ?
A product is anything that is capable of satisfying customer needs .
What does tangible ?
Tangible means that you can touch it .
What is an example of a tangible product ?
A car
What is a service ?
A service is an act that a business person carries out for you in exchange for money .
What is an example of a service ?
The dentist
What are the 4 things neded to produce goods and services ?
Land , Labour , capital and enterprise .
What is land ?
Land is somewhere to produce the goods like a farm .
What is labour ?
People who work in the business
What is capital ?
Money to get the business started.
What is an enterprise ?
An enterprise is the drive or motivation from the owners to start a business .
What is an opportunity cost ?
The cost of not selecting an alternative when making a decision .
What are the 5 reasons for starting a business ?
. To produce goods
. To supply a service
. To disribute products
. To fulfil a business opportunity .
. To provide a good a service to benefit others .
What is the primary sector ?
The primary sector extracts raw materials from the planet .
What is the secondary sector ?
Goods are manafactured from raw materials into finished goods.
What is the tertiary sector ?
The tertiary sector is the shops that sell the prdocuts or lorries that transport the shops.
What is an entrepeneur
An entrepeneur can be defined as: A person who starts a business and takes on financial risk in the hope of making a profit
What qualities does an entrepeneur need to have ?
They have to be hardworking , initiative , organised , risk taker.
What are some entrepeneur objectives ?
To be your own boss , flexible hours , to pursue an interest , to earn money , to identify a gap in the market.
What are the changes that have happened to a business to adapt ?
Changes in Technology
Changes in the economic situation
Changes in legislation
Changes in enviromental expectations
What is inflation ?
The rate of increase in prices for goods and services