Enterprise Flashcards
What is meant buy an enterprise?
An enterprise can mean another term for a business and can also refer to the actions of a risk taker.
What is an entrepreneur?
Someone who establishes a business.
What are the characteristics of an entrepreneur?
Risk taker, self belief and confidence, persistence and drive, ability to work under pressure, creative + imaginative, comfortable with risk, leadership skills, energy and enthusiasm.
What are the factors of production?
Land, labour, capital and enterprise.
What does factors of production mean?
The inputs used in the production of goods or services
What is value added?
What a business achieves by ensuring that the price of the finished good or service is in excess of the cost of the input
What are three ways to improve value added?
Performance, costing, aesthetics
What are ways of adding value?
Building a brand, delivering excellent service, product features and benefits, offering convenience, reduce costs
What are the benefits of adding value?
Charge a higher price, create a point of diff from comp, protection from competitors trying to steal customers by charging lower
What are issues with adding value?
Customers don’t want to pay higher prices, comp may copy diff in product, market could decrease
What are the sectors of the economy?
Primary, secondary, tertiary, quaternary
What’s the primary sector?
Industry involved with extracting raw materials eg fishing, farming
Whats the secondary sector?
A business concerned with manufacturing the raw materials
Whats the tertiary sector?
Concerned with the output of services eg retailing, banking
Whats a private sector business?
Business owned and run by private individuals- usually for profit
