Enterprise Flashcards
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. These 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.
Consumer services.
The non-tangible products sold to consumers that are not intended for resale. These include hotel accommodation, insurance services and train journeys.
Factors of production
The resources needed by business to produce goods or services.
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 mew product or business venture.
Business plan
A written down document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts.
