PURPOSE OF BUSINESS Flashcards
what is a sector?
a part of the economy that provides specific goods and services e.g. education
what is a primary sector?
raw materials or natural resources e.g. oil
what is a secondary sector?
manufactured goods - things that are made
tertiary sector
services that are offered
factors of production
what is needed to produce products
factors of production - land
all natural resources, renewable and non - renewable e.g. coal, wood, animals, mines
factors of production - labour
work done by people to produce goods and services
factors of production - capital
things that are made to enable production e.g. factories, machines and schools
factors of production - enterprise
entrepreneurs who take risks to produce things using the other factors of production
what is opportunity cost
the benefit of a course of action which is lost when you decide to do something else
what are objectives?
the specific goals set by a business to reach its aims
what are some characteristics of an entrepreneur?
motivated, willing to take risks, organised and innovative
what are some objectives of an entrepreneur?
financial reward, independence, to fulfill a need for goods or services or have an interest in the area of business
what is the business environment?
all the factors, both internal and external that affect a business
what are raw materials?
unprocessed resources from land
