Section 1 - Business In The Real World Flashcards
What is a business?
A business is an organisation that provides good and/or services to the customer
Why is a business set up?
- To offer services or goods
- To earn revenue
What formats of businesses are there?
Primary - raw goods
Secondary - manufacturing
Tertiary - service
Give an example of a service.
A bank
Give an example of a good
Smartphone
What is the opportunity cost?
the amount of sacrifice making a decision has
What are economies of sale?
Businesses can get discounted rates if they build or buy in bulk
What is a social enterprise?
This is a scheme, like the john lewis partnership, who whose works benefit the community and their workers.
Example of Social enterprise (not already mentioned) and why?
‘The big issue’ because they give a large percentage of money to the person selling it.
Why do companies have social enterprises?
- To help the community
- To boost their popularity (rarely)
What is a need?
A need is something that we need to survive. Food, water, warmth.
What is a want?
A want is something that we don’t need, but desire. Most businesses are a want.
What are factors of production?
These are factors that are available for businesses to use. They are land, labour, enterprise and capitol.
What is a sole trader?
People who own a business by themselves, and don’t have any investors apart from themselves.
Advantages of a sole trader?
It’s simple, easy to operate and easy to set up. The owner gets all of the say in the business and it is under his direction.
