test Flashcards
what is enterprise ?
An enterprise can just be another name for a business. (1) It can also mean the having the skill and taking the initiative and the risk to make a business happen
what is an sme?
An SME is a small or medium enterprise. Small businesses have less than 50 employees but medium business can have up to 250. (1) They have small turnover relative to bigger businesses (Less than £50m). (1) The legal structure is usually sole trader, partnership or private limited company
what are needs ?
People have a limited number of needs that must be satisfied if they are to survive. (1) These would include physical needs such as a minimum amount of food, water, shelter and clothing
what are wants
Wants are unlimited people constantly aim for a better quality of life. (1) For example, better/more food, better housing, longer holidays, better education, entertainment – in effect any example that is not a basic need
whats an entrepreneur
An entrepreneur is someone who starts and runs a business. (1) Perhaps he or she makes a product and then sells that product, or perhaps they provide a service. (1) They quite possibly employ people and, of course, try to make a profit
whats primary sector
The primary sector creates or extracts raw materials (1) for the use of manufacturing or production
whats secondary sector
The secondary sector is the use of raw materials to manufacture or produce finished goods (1) to be sold to other business or in the tertiary sector
whats tertiary sector
The tertiary sector or the service sector provides goods and services (1) to other businesses as well as to final consumers
formula revenue
Selling Price of good or service X Quantity of units Sold
formula for profit
Revenue – Total Costs of production
