Enterprise Flashcards
Customers
An individual consumer or organisation that purchases goods and services from a business.
Consumer
An individual who purchases goods and services for personal use.
Consumer goods and services
Tangible goods or non-tangible services sold to consumers that is not intended for resale.
Factors of production
Resources needed for the production of goods and services.
There are four factors of productions which are land, labour, capital and enterprise.
Capital goods
Goods that aid in the production of other.
Added value and Adding value
Added value is the difference between the selling price and cost of bought in materials.
Adding value is increasing the difference between the selling price and cost of bought in materials.
Ways to increase added value
-Increase the price
-Reduce the cost
Branding
The process of differentiating a product by developing a name image or trademark for it.
Opportunity cost
The next best alternative that is given up.
Changes in business environment
-New competitors
-Legal changes
-Economic changes
-Technological changes
Why do businesses succeed
-Good understanding of customer needs.
-Efficient management of operations.
-Flexible decision making to adapt to new situations
-Appropriate and sufficient sources of finance.
Why do businesses fail
-Poor record keeping
-Lack of cash
-Poor management skills
Multinational Business
A business organisation that has operations in more than one country.
Intrapreneur
A business employee who takes direct responsibility for turning a new idea into a profitable product for an advantage over other businesses.
Entrepreneur
A individual who has a idea of a business and takes risk for new business venture.
