Chapter 1: Enterprise Flashcards
Covers syllabus section AS Level 1.1 terms and definitions
entrepreneur
an individual who has the idea for a new business, starts it up, and carries most of the risks but benefits from the rewards
customer
an individual consumer or organisation that purchases goods or services from a business
consumer
an individual who purchases goods and services for personal use
consumer goods
the physical and tangible goods sold to consumers that are not intended for resale.
consumer services
the non-tangible products sold to consumers that are not intended for resale.
factors of production
the resources needed by a business to produce goods or services (land, labour, capital, enterprise)
the factors of production
CELL: Capital, Enterprise, Land, Labour
capital goods
the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles
enterprise
the action of showing initiative to take the risk to set up a business
adding value
increasing the difference between the cost of bought-in inputs (materials) and the selling price of the finished goods
added value
the difference between the cost of purchasing bought-in inputs (materials) and the selling price of the finished goods
branding
the process of differentiating a product by developing a symbol, name, image or trademark for it
opportunity cost
the next most desired option that is given up
multinational business
a business organisation that has its headquarters in one country, but with operating branches, factories, and assembly plants in other countries
intrapreneur
a business employee who takes direct responsibility for turning an idea into a profitable new product or business venture
