Topic 1.1 Enterprise and entrepreneurship Flashcards
Entrepreneur
Business people who see opportunities and are willing to take risks in making them happen in order to earn a profit.
Dynamic Nature of Business
The idea that business is ever-changing because external factors, such as technology, are always changing.
Venture capital
risk capital provided by an investor (venture capitalist) willing to take a risk in return for a share un any alter profits; the venture capital provider will take a share stake in the business.
Demand
The number of units that customers want and can afford to buy
Customer
Consumer
Obsolete
A product or service with sales that have declined of come to an end as customers find something new
Adapting existing products
Finding new products based on original ones
Competetive Advantage
A feature of a business that helps it to succeed against rivals
Original ideas
Ideas that have not been done before
Business Failure
The collapse of a business leading to its closure
Independance
The need by many business owners to make their own desicions and be their own boss
Lack of Financial Security
Uncertainty for the business owner about family income and assets
Risk and reward
The balance between the worst that can happen and the best that can happen
Customer needs
The products or services people need to mkae life comfortable
Customer wants
What people choose to spend their money on once the weekly bills have been paid
Goods
Products that may be fresh such as apples or manufactured such as Heinz baked beans
Services
Providing useful ways for people to live their lives for example shops, restaurants and hospitals
Gross profit
The amount of money made when you take away the cost of sales from the sales revenue
Expenses
The indirect cost you have to pay for example labour
Competetive advantage
The unique selling point that one business has making their product better than its competetitors
Branding
Giving a product or service perssonality with a name or logo that makes it stand out
Unique selling point
An original feature of a product that rivals arent offering
Value added
The difference between the selling price and the cost of bought in goods and services
