Section1 Business IRL Flashcards
What do business supply
Goods
Services
What is a good
A physical and tangible item the business sells
What is a service
Service is an action a business can sell (barber plumber)
What are the sectors in a business
Primary secondary and tertiary
What is the primary sector of a business
Produces raw materials which are made into a good or a service
What is the secondary sector of a business
Manufacture goods and turn them into a finished product
What is the tertiary sector of a business
Provide services
Qualities of an entrepreneurs
Hardworking
Organized
Risk taker
Innovative
What are the 4 factors of production
Land
Labour
Capital
Enterprise
What is opportunity cost
When you have two products but you can only afford to buy one
What is a sole trader
Is a business owned and operated by one person.
Pros and cons of a sole trader
Pros
Easy to start up. You are your own boss. You decide what happens to all profits.
Cons
Long working hours limited holidays
Unlimited liabilities personal possessions can be taken
If someone’s sues your business you will get sued as you are unincorporated.
What is a partnership
A partnership is a business owned by two or more people who share profits and responsibilities
Pros and Cons of Partnerships
Pros
More ideas, skills, expertise
Cons
Each partner is legally responsible for each other
Unlimited liability
Disagreements
Less profit split
What is an LTD
Pros and Cons of a LTD
