Chapter 1- Enterprise and business Planning Flashcards
PRIMARY SECTOR:
what does the primary sector provide for us?
provide food we need through farming
how does the primary sector provide power for us?
through mining
where does the primary sector extract oil from?
the North Sea
SECONDARY SECTOR:
in the secondary sector, what do private enterprises provide us with? (list)
massive amount of consumer goods-
- manufacturing cars
- processing food
-making clothes
-designing and producing consumer electronics
(all goods that surround us in shops we visit, that help satisfy our every want).
TERTIARY (SERVICE) SECTOR:
in the tertiary sector, what do private enterprises provide us with? (list)
-gyms
-offering financial advice
-operating fleets (navies) of buses and trucks
-prepare marketing campaigns
,etc…
In the UK, how many separate businesses are there?/ how many people are they employing?
almost 5 million employing 24 million people
what are sole proprietors?
self- employed people who own/ run their own business
out of the almost 5 million businesses in the UK, how many of them are sole proprietors?
over 3.3 million
what are partnership businesses?
2 or more ‘partners’ carrying out a business with a view to making a profit
how many businesses in the UK are partnerships?
around 500 000
what are limited companies?
business structure where the company has a legal identity of its own, separate from its owners/ managers).
how many people do SMEs (small and medium- sized enterprises) employ?
around 14.4 million people
what’s a turnover?
total sales made by a business in a certain period
how much money do SMEs have a combined turnover of?
£1,600 billion
What is the main reason people start businesses?
to gain profit (financial gain)
for an entrepreneur who is starting a small business for the first time, would the main goal just be about money?
no, even so earning a decent income in the source of profit will be a major focus
Besides gaining a profit what’s the other reason people start their own businesses?
to turn a hobby or pastime (passion) into a business
- many new entrepreneurs are able to do this
instead of maximizing profits, what things do the entrepreneurs who turn their hobbies into businesses balance?
work
customer satisfaction
their own freedom to live a lifestyle they are content with
- this is known as ‘satisficing’
what is ‘ satisficing’?
decision making that aims for a satisfactory result/ not using all energies trying to maximize income
Another reason people start businesses is to use ———- money. fill in the gap.
redundancy money
explain what redundancy money is and why people use it to start businesses
your job role is no longer required and your company provides a finance package yo say sorry- can be ‘’ for every year you have worked, we’ll pay you a monthly salary’’
-e.g. if you’ve worked for 10 years, they’ll pay you a certain amount for 10 months.
why else do people start their own business besides redundancy money?
to be their own boss
- people often just want to be their own boss, in control of their own destiny
what are entrepreneurs who start a business to be their own boss often searching for?
an idea they can turn into a business
what is studying business not just about?
looking at big businesses like BP, Apple, Sony/ hundreds of others who are worldwide (multi-national) enterprises, with billions of £s in assets and profits.
how are small businesses also important to the economy?
a huge number of separate enterprises are helping to innovate/ drive economic growth
- creating opportunities for employment and satisfy consumers’ needs and wants
are needs and wants fixed?
no, they can change quickly
