Understanding business Flashcards
What are the sectors of economy
Private sector-Made up of profit making business e.g Tesco
Public Sector -Made up of organisations set by the government e.g The NHS
Third-Made up of charities, voluntary groups and social enterprises.
What are the sectors of industry?
Primary -raw materials extracted from the ground
Secondary -converting raw materials into finished goods
Tertiary -providing a service
Quartenary-providing specifically a knowledge based service
What is a stakeholder
Stakeholders are individuals or organisations that have an interest in the performance or operation of an organisation
What are the types of organisations
Sole trader-A business which is owned and controlled by one person
Partnerships-A partnership is a business association between 2 and 20 people
Private Limited Company -organisation that was set up by following a legal process and is registered with companies house
What is the acronym PESTEC spell out
P-Political covers a change in legislation
E-Economic covers a change in economic activity such as an economic recession and tax
S-Social factors cover a change in consumer market,trends, lifestyle
T-Technological factors covers new innovations and new upgrades
E-Environmental covers a change in weather and natural disasters
C-Competitive covers a change in competitor activity.
What is an entrepreneur
Am entrepreneur is an individual who develops a business idea and combines the factors of production in order to produce a good or provide a service
What are objectives
Means the goals or aims to start a business
What is the command words
Compare-Give similarities between the 2 factors using the word both
When given a difference-use whereas
Describe -Give the identified term
Give a description
Give an example
Discuss-Give a subheading advantages and give an advantage or use the word however and then give a disadvantage
Distinguish-Use differences only and use the word whereas
Explain-State the fact
Then use words like Therefore and resulting in and give a consequence to the business.
Identify -Give one word answers only
Justify-Give advantage of the factor or reasons for a business should do something
Outline- Treat Outline as a DESCRIBE question but give identified terms
What are the factors of production
Land -The natural resource used in business eg land to build the business on
Labour-Human resources including the staff who work for the business
Capital-The money invested to start a business and also man made resources such as machines and factories
Enterprise -Having a good idea for a business and making it a reality
