Topic 1.1 The Purpose And Nature Of Business. Flashcards
Define a “good”
a physical product, such as a car.
Define a “service”
an intangible product (you cannot touch it), such as financial advice or a bus journey.
Define a “customer”
someone who buys a product from a business.
Define a “consumer”.
someone who uses goods and services produced by businesses.
Define an “entrepreneur”
someone who is willing to take the risks involved in starting a new business.
Define “entrepreneurship”
refers to the ability to be an entrepreneur - to take risks to develop a business idea.
Define a “social enterprise”
a business that is set up to help society rather than to make a profit.
Define “resources”
are the inputs that businesses use to provide their goods or services.
Define an “enterprise”
is another word for a business. It also refers to the skills of the people involved in the business to identify business opportunities and bring together resources to meet these opportunities.
Define “interest”
is the money paid by banks as a reward to attract people to save with them.
Define “interest rates”
refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
Define “inflation”
refers to the rate at which prices are increasing. For example, if inflation is 2 per cent, prices are generally growing by 2 per cent that year.
Define “gross domestic product (GDP)”
measures all the income earned in a country’s
economy in a year.
