Introduction to Business - Enterprise Flashcards
What is meant by an entrepreneur?
undertakes financial risk in the hopes of profit
What is meant by enterprise as a factor of production?
another name for a business or company
What are the 4 factors of production?
Land, labour, capital, enterprise
What is land as a factor of production?
Natural resources or other uses on the land such as buildings
What is labour as a factor of production?
Human resources
What is capital as a factor of production?
Man made resources such as buildings, tools and machines
What is enterprise as a factor of production?
When the owner combines all 3 for production
How has technology changed the importance of land as a factor of production?
Due to technology some businesses don’t have a base of operations
How has technology changed the importance labour as a factor of production?
Technology can replace manual labour
What is the importance of enterprise as a factor of production?
Most important as brings all 3 together
What is the importance of enterprise to an economy?
- Employment creation
- Economic growth: any increase in output of goods will increase the gross domestic product of the economy.
- Firms’ survival and growth
- innovation and technological change
- Exports
- Personal development
What are the characteristics of an entrepreneur?
- Commitment and self-motivation
- Multi-skilled
- Leadership skills
- Self-confidence
- Risk tacking
