Paper 1 Simple Flashcards
Business
An organisation that is set up to produce goods and services on a commercial basis.
Enterprise
The skills and abilities to take risks and create profits.
The creation of a business to meet the needs and wants of customers.
Entrepreneur
A person who takes the risk of starting a new business
Start-up
A new business enterprise, formed by one or more entrepreneurs.
Popular sources of business ideas
Personal experience
Business experience
Brainstorming
Innovations
Market mapping
Observations
Skill
Ability to do something well.
Characteristic
A feature or quality
Intrepreneurship
Involves people within a business creating or discovering new business opportunities, which leads to the creation of new parts of the business or even new businesses.
Risk
The probability that things will not go as well as planned.
Uncertainty
When businesses are unable to predict external shocks or future events.
Mission statement
A qualitative statement of the businesses aims.
Aims
A long term plan from which business objectives are derived.
Objective
A specific measurable target which the business adopts in order to achieve its overall aims.
Purpose of objectives
• Motivate employees.
• Measure performance.
• Provide a clear focus for decision making.
• A focus for all activity.
Corporate and functional objectives
The overall business targets.
Translate down to each department or function.
