Entrepreneurial Actions Flashcards
What are the 4 entrepreneurial actions?
- Buy 2. Produce 3. Sell 4. Profit
What does an entrepreneur need to purchase?
Equipment, raw materials and stock.
What is another term for equipment?
Capital items
What dos the entrepreneur do while buying equipment?
Negotiates the price with supplier.
What does an entrepreneur need to decide before buying equipment?
What equipment is needed, and where and how much will be purchased.
What are raw materials?
Raw materials are non-manufactured materials used to make other goods. They are the inputs in the production process.
What are raw materials?
Raw materials are non-manufactured materials used to make other goods. They are the inputs in the production process.
What type of supplier does an entrepreneur need to find?
An entrepreneur needs to find a reliable supplier, in order to have a successful business.
In a small business, who buys all the equipment, materials and stock?
The entrepreneur
Who buys the materials, stock and equipment in a large business?
A manager is appointed to take on this task.
What is producing?
Producing is the action of making a product. It involves taking raw materials and turning them into something useful that can be sold to customers.
What do businesses that don’t sell goods do?
They sell a service without making any physical product.
What are businesses that produce products called?
Manufacturing businesses
In a manufacturing business, what soes rhe entrepreneur decide?
Thet decide what will be produced and how it will be produced, they decide what the production process will be to make the products.
What is selling?
Selling is the action of persuading customers to buy a product or service.
What does selling involve?
It involves activities such as advertising and marketing.it also involves talking to customers and explaining to them how a product works.
What is an important part of selling?
Making sure that customers are satisfied with what they buy so that they come back again.
What is the goal of owning a business?
To make a profit.
How does an entrepreneur calculate the profit?
They keep good records of how much money is spent and how much money is made. These are known as financial records.
Jow do financial records help the entrepreneur?
They help keep track of how much money is coming into the business (income) and how much is being used/ flowing out (expenses).
What do entrepreneurs do in order to make as much profit as they can?
They try to maximise the income of the business and minimise the xosts (expenses).
