Entrepreneurs And Business Resources Flashcards
What is a business?
It is an organisation which is involved in the production of goods or the provision of services to meet customer wants and needs.
What are needs?
Basic products that people require to survive
What are wants?
Refer to the desire to consume good and services that are not essential
What is a consumer (customer)
Any person or organisation that buys a product
What is a good and a service
Good - physical object that people can buy
Service - non physical item that people can buy
What is land (factor of production)?
Defined as all the natural resources (grow crops or gain raw materials on, above or in earth)
What is labour (factor of production)?
The human resource - workers who are employed to manufacture products or provide the service.
What is capital (factor of production)?
The manufactured resource that is used in the production process to make goods and services. It is not wanted for itself but for what it can go on to produce. The payment to capital is interest.
What is enterprise (factor of production)
The skill and risk-taking ability of the person who brings the other resources together to produce a good or service.
