Enterprise Flashcards
What is a business?
A business is an organisation that exists to ensure a product or service meets customer demand, whether that be to make a profit or help a cause.
What gives a product added value?
1) Being branded
2) Having a unique selling point
3) The quality and design
4) Convenience
What are the factors of production?
Things needed for the business to run and be successful
What is the acronym used to remember factors of production?
c = capital/cash e = enterprise l = labour l = location
What is the primary business sector?
Extraction of raw materials
Exemplify two primary sector jobs.
Farming and fishing
What is the secondary business sector?
Assembling of raw materials
Exemplify two secondary sector jobs.
Factories and manufacturing
What is the tertiary business sector?
Commercial sector
Exemplify two tertiary sector jobs.
Car dealership and clothing store
What is organic business growth?
Internal e.g. sales increase
What is artificial business growth?
External e.g. takeover or merger
What defines a business as small, medium or large?
Small = 10-49 employees, < £10m turnover Medium = 50-250 employees, < £250m turnover Large = 250 + employees, £250m + turnover
What is an aim?
A general goal that a business strives towards over a long period of time using the objectives they set for themselves.
What is an objective?
A more specific target in comparison to the aim and contributes towards the overall success of the business by focusing on smaller successes first.
Using the acronym SMART, what makes a good objective?
Specific, measurable, achievable, relevant and time effective.
What 5 subjects are the objectives usually regarding?
1) Profit
2) Growth
3) Survival
4) Cash-flow
5) Ethics
What are the internal and therefore controllable factors of a business?
(FMOP) : Finance, Marketing, Operations, Productions
What are the external and therefore uncontrollable factors of a business?
PESTLE
What are the events that occur due to an economic recession?
Unemployment and therefore crime increases. GDP decreases.
Name 11 stakeholders.
Owner, customers, competition, employees, investors, suppliers, government, bank, local community, pressure groups and trade union.
What does it mean to be risk averse?
Not taking risks as you fear failure.
What is an opportunity cost?
The expense of choosing one option over another.
What is an enterprise?
The process by which new businesses are formed and new services or products are brought to the market.
What is an entrepreneur?
An individual with the idea or business.
What 4 reasons would lead an entrepreneur to start their own business?
1) To be their own boss
2) To determine own wage
3) To fill a gap in the market
4) To turn a hobby into a lifestyle