Enterprise And Business Functions Flashcards
1
Q
What are the two meanings of the word enterprise?
A
- Simply another term for a business
2. Refers to the actions of a risk taker who starts up a business
2
Q
What is an entrepreneur?
A
A risk taker who sets up a business
Someone who creates and sells products in order to make a profit
3
Q
What are factors of production?
A
The inputs that are used in the production of goods or services.
The factors are land, labour, capital and enterprise
4
Q
What is value added?
A
What a business achieves by ensuring that the price of the finished good or service is in excess of the cost of the inputs
5
Q
What are the characteristics of an entrepreneur?
A
Energy and enthusiasm Self belief and confidence Persistence Ability to work under pressure Creativity Comfortable with risk Leadership skills
6
Q
What the four constraints on business?
A
The environment
Competition
Legislation
The economy
