TMA1 Flashcards
What are the factors of production?
Land(oil,…)
Labour(workers,…)
Capital(iPhone,…)
Enterprise(the idea for a business)
What are the sectors of industry?
Primary sector, secondary sector, tertiary sector
What is the primary sector?
if a business grows or extracts a product from the ground. e.g. farmers
What is the secondary sector?
These are business’ who manufacture products e.g. glassmakers
What is the tertiary sector?
These are businesses who provide a service e.g. shops, banks
What are the sectors of the economy?
Private
The Third Sector
Public
What is a private organisation?
An organisation with a profit motive
What is the third sector?
Organisations which are not for profit
What is a public organisation?
Organisations that are funded by the ‘public purse’
What are some of the characteristics of an entrepreneur?
Identifies new business ideas and DEVELOPS the idea
Take the RISK to lose all or part of the investment
Combine factors of production
Hand out strategic and tactical decisions
What is a sole trader?
-Someone who is owned and controlled by one person
-All of their profits go to them alone
-Their own boss, therefore they are responsible for buying stock and paying bills
What are limited liability companies?
They are companies owned by shareholders and controlled by the board of directors
What is a franchise?
A partnership between more than one company
What do the roles of business within society involve?
They involve taking RESOURCES and using them to produce GOODS and SERVICES that peoples use to satisfy their NEEDS and WANTS
Why is customer satisfaction important for a business?
It makes customers return to buy more things, and encourages the customers to spread the shops name and give it a better reputation which increases the business’s sales and profit
