Introduction to business Flashcards
Define entrepreneur.
A risk taker who sets up a new business
Define enterprise.
Another term for a business
What are the four factors of production?
Land, Labour, Capital and Enterprise (Loopy Lottie counts eggs)
Define what is meant by factors of production.
The inputs which are used in the production of goods and services.
Why are the factors of production important to stakeholders?
A shortage in the factors of production means that a business will raise its prices as the factor will be more expensive, creating a lower profit margin.
Why is entrepreneurship and enterprise important for the economy?
Entrepreneurs and enterprise provide jobs, goods and services, they provide a higher tax revenue for the government and create a better national income.
What is an entrepreneur’s role in decision making?
An entrepreneur’s decisions determine the success of the business, whether this is through leadership skills or their creativity.
What are the 6 characteristics of an entrepreneur?
Energy and Enthusiasm, Leadership, Creativity and imagination, ability to be comfortable with risk, ability to work under pressure, persistence and drive.
Why is entrepreneurial activity important for the stakeholders of a business?
Employee’s need motivation to keep the efficiency of the business high, customers need new products/good customer service and shareholders want the business to grow.
What is a primary organisation?
The sector which deals with the extraction of raw materials.
What is a secondary organisation?
The manufacturing sector.
What is the tertiary sector?
The retail sector. (also banking and transportation. e.g: where the finished product is used or sold)
What is a private sector business?
A business which is owned by an individual or individuals.
What is a public sector business?
A business which is owned by the government.
What is a third sector business?
A non-profit organisation/ as charity… seeking to achieve social goals.
What is a national business?
A business which operates in one country.
What is a multinational business?
A business which has operations in more than one country.
What is a local market?
Goods and services are sold where they are made.