Chapter 1: Enterprise Flashcards
Define consumer goods
Consumer goods: the physical and tangible goods sold to the general public – they include durable consumer goods, such as cars and washing machines, and non-durable consumer goods, such as food, drinks and sweets that can be used only once.
Define consumer services
Consumer services: the non-tangible products sold to the general public – they include hotel accommodation, insurance services and train journeys.
Define capital goods
Capital goods: the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Define creating value
Creating value: increasing the difference between the cost of purchasing bough-in materials and the price the finished goods are sold for.
Define opportunity cost
Opportunity cost: the benefit of the next most desired option which is given up.
Define entrepreneur
Entrepreneur: some one who takes the financial risk of starting and managing a new venture.
Define triple bottom line
Triple bottom line: the three objectives of social enterprises: economic, social and environmental.
Define social enterprise
Social enterprise: a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners.
Define customers
A customer is anyone who receives a product (good or service) from an organization
Define enterprise
An enterprise is a business or organization that uses resources to provide goods or services with the aim of making profit
Define adding value
Adding Value is when a business sell goods or services for a higher prices than the cost of bought in materials
Define dynamic environment
A dynamic environment are external factors that constantly change and affect the businesses operations
Define local business
A local business operates in small well defined parts of a country
Define a National business
A national business is a business that has branches or operations across a country
Define international business
An international business sells products in more than one country