Understanding business (unit 1) Flashcards
What is a need?
A need is something that a human being requires in order to survive.
give 3 examples of needs
food;
water;
clothing;
shelter.
What is a want?
A want is something that a human being can live without but which can make life more enjoyable.
Name 3 wants
mobile phones;
holidays;
Netflix;
cars.
any non need
What are goods?
Goods are items that we can see, touch and pick up.
Name 3 examples of goods
clothing;
magazines;
televisions;
washing machines;
cars.
What are durable goods?
Durable goods are goods that can be used more than once such as mobile phones, fridges/freezers and bicycles.
What are non durable goods?
Non-durable goods are goods that can only be used once or that only last for a short period of time such as a piece of cake, a single journey bus ticket and a pair of shoes.
What are services?
Services are things that are done for us
Name 3 examples of services
getting your hair done;
a plumber fixing a leak in the house;
going out for dinner;
going to the doctor for medical advice;
internet connection.
What are factors of production?
These are the factors that the entrepreneur needs in order to start up the business.
Name the 4 factors of production
The factors are capital, enterprise, land and labour. These can also be remembered using the acronym CELL.
What is capital
Capital - money, tools and equipment invested into a business.
What is enterprise?
Enterprise - the idea behind a business (i.e. the entrepreneur who set it up).
What is land?
Land - the natural resources a business will use.
What is labour?
Labour - the employees of a business.
What is an entrepreneur?
An entrepreneur is the person who comes up with the idea for a business and combines the factors of production together to start the business.
Name 3 reasons for wanting to be an entrepreneur
to make money;
they have been made redundant and see it as an alternative option;
they have spotted a gap in the market, e.g. they may have noticed there is demand for a service in the local area such as cleaning;
they wish to pursue a hobby/interest, e.g. someone may enjoy baking and decide to make a business out of it;
to be their own boss - some people prefer doing their own thing rather than being told what to do.
Name 3 skills possesed by an entrepreneur
Leadership
Communication
Organisation
Problem-solving
Interpersonal
Name 3 qualities possesed by an entrepreneur
Determined
Motivated
Risk-taking
Innovative
Confident
What are the 3 sectors of industry
Primary sector
Secondary sector
Tertiary sector
What is the primary sector of industry
Primary sector industry involves extracting raw materials from the environment or growing raw materials, e.g. mining and farming.
What is the secondary sector of industry
Secondary sector industry involves manufacturing products, e.g. factories and house building.
What is the tertiary sector of industry?
Tertiary sector industry involves any business which provides a service, e.g. gyms and hotels.