key terms Flashcards
what is an entrepreneur?
someone willing to take risks in starting a new business
What is entrepreneurship
ability to be an entrepreneur
what is a social enterprise?
a business set up to help society rather than make a profit
what is enterprise?
business, refers to skills of people within the business to identity business opportunity
what is opportunity cost?
the alternative option given up when resources are spent in another way
what is interest?
the money paid by banks as a reward to attract people to save money with them
what is the primary sector?
organisations that extract the earth’s resources
what is the secondary sector?
organisations that use raw materials to manufacture goods + construct stuff
what is the tertiary sector?
organisations that provide services to consumers + other organisations
what are interest rates?
the cost of borrowing money / rewards for saving money expressed in percentage
what is inflation?
the rate at which prices are increasing
what is GDP (gross domestic product?)
measures all the income earned in a country’s economy in a year
what is demand?
amount of a product that customers wish to purchase at the current price over a period of time
what is a company?
a business with it’s own legal identity
what is a shareholder
person/organisation that owns a share (part of) of the company
