Topic 1 Flashcards
Explain what a business enterprise is
A business enterprise is the process by which new businesses are formed in order to offer products and services in a market
List the four factors of production
Capital, enterprise, land and labour
Explain capital as a factor of production
Capital refers to what is used to produce goods and services, eg machinery and tools. Capital also includes money within the business.
Explain enterprise as a factor of production
Enterprise refers to the act of bringing together all the factors of production in order to create goods and services.
Explain land as a factor of production
Land includes natural resources used for producing goods and services, eg farmland for growing crops. Also includes natural resources such as plants, coal and oil. Finally, the physical premises that the business is on.
Explain labour as a factor of production
Labour includes human resources involved in the production of a good or service, eg employees.
List five motives to become an entrepreneur
To make money
To create their own job - be their own boss
To take advantage of opportunities - spotted a gap in the market
To have a more flexible work schedule
To pursue a hobby or interest
List four key characteristics of an entrepreneur
Determined, risk taker, innovative and highly motivated
Explain determined as a key characteristic of an entrepreneur
Determined - entrepreneurs are willing to work hard and put the commitment in to make their business a success
Explain risk taker as a key characteristic of an entrepreneur
Risk taker - the entrepreneur is willing to take calculated risks to make their business a success
Explain innovative as a key characteristic of an entrepreneur
Innovative - entrepreneurs can spot gaps in the market and show the initiative to take advantage of these opportunities
Explain highly motivated as a key characteristic of an entrepreneur
Highly motivated - entrepreneurs are extremely motivated and have a strong want to succeed
