Glossary Flashcards
Entrepreneur
A person who takes risk and organises factors of production
Added Value
The differeence between the cost of purchasing bought-in inputs (raw material) and the selling price of the finished goods.
Adding Value
Increasing the difference between the cost of purchasing the inputs and the selling price of the finished products.
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.
The next best alternative that is forgone when making a decision.
Intrapreneur
A business employee who takes direct resposibility for turning an idea into a profitable new product or business venture.
Customer
An individual consumer or organisation that purchases goods or services from a business.
Consumer
An individual who purchases a good or service for personal use.
Factors of production
The resources needed by business to produce goods and services
Capital goods
Also give examples
The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Business plan
A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecast.
Multinational business
A business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.
Primary sector business
Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed.
Secondary sector business
Firms that manufacture and process products from natural resources, including computers, brewing, baking, clothes-making and construction.
Tertiary sector business
Firms providing services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels and tourism.
