Topic 1 Flashcards
Good
Is a physical product
Service
Is an intangible product
Customer
Is someone who buys a product from a business
Consumer
Is someone who uses goods and services produced by business
Entreprenuer
Is someone who is willing to take the risk to start a new business
Social enterprise
Is a business is ser up to help society rather to make profit
Resources
Are the inputs that businesses use to provide their goods or services
Enterprise
Refers to the people,who o have skills
Interest
Is the money paid by banks as a reward to attract people to save with them
Primary sector
Made up of organisations that are at the first stage of production that use raw materials
Secondary sector
Made up of organisation that are at the second stage of the production process
Tertiary sector
Is the final stage and is made up of organisation that provide services for e.g. fast food
Interest rates
Refer to the cost of borrowing money
Inflation
Refers to the rate at which prices are increasing
Sole trader
Is someone who sets up in business on his or her own
Advantages of being a sole trader.
-It is quick and easy to set up as a sole trader
-make decisions for yourself
You keep all profits for yourself
Disadvantage of being a sole trader
-It can be stressful making all decisions yourself
-A sole trader needs to handle all aspects of the business
If the business goes wrong you have unlimited liability
Profit
Measures the difference between the values of a business revenue (sale) and its total cost
Unlimited liability
Means that the personal possessions of the owners of a business are at risk if there are any problems. There is no limit to the amount of money of the owners may have to pay out
Partnership
Occurs when two or more people join together in a business enterprise to pursue profit
A deed of partnership
Is an agreement between partners that sets out the rules of the partnership, such as how profit will be divided and how the partnership will be valued id someone wants to leave
