C1; enterprise and business functions Flashcards
What are the definitions of enterprise
1) another phrase for a business
2) to refer to the actions of a risk taker who starts up their own business (an entrepreneur)
List some characteristics of an entrepreneur
Self belief and confidence Persistence Ability to work under pressure Creative and imaginative Enthusiastic Leadership and communication skills Ability to take risks
What are the factors of production
Land
Labour
Capital
Enterprise
Give definitions of the factors of production
Land- natural resources
Labour- any Human Resources available e.g.) working to improve
Capital- buildings, machinery, and tools not money
Enterprise- the entrepreneur who organises the other factors
What does factors of production mean
The inputs that are used in the production of goods or services. They are land, labour, capital and enterprise.
Explain the factors of production for bread
Land- grow wheat and build the bakery on land
Labour- plant the wheat, drive the combine harvester, collect wheat, make bread, sell bread.
Capital- combine harvester to collect wheat, ovens, baking trays, packaging machines for bread
Enterprise- is the entrepreneur who owns the farm or bakery. The person who organises the other factors to make a profit.
What does value added mean
What a business achieves by ensuring that the price of the finished good or service is in excess of the cost of the inputs
What does added value ensure
The business makes a profit
How can you add value to a good or service
Changing its appearance/ making the material into something
Creating an image for the product
What is a constraint
A restraining factor on a business to limit how it operates
What can constraint (limit) a business
Competition
Environment
Legislations (laws)
The economy
What are the functions in a business
Accounting and finance
Operations management and production
Marketing and support services
Human resource management
What does accounting and finance do
Monitors and controls businesses financial resources
What do operations management and production do
Production can be seen as the process of changing
The inputs into outputs. Management is putting steps into place to ensure production is effective and efficient
What do marketing and support services do
To find out the needs of target population.
To ensure customers buy the products through influential advertising
