Unit 1 Flashcards
What are the factors of production?
Land
Labour
Capital
Enterprise
What does land mean in production?
Smewhere to produce the goods
Example of land in production?
Farms
What is labour in production ?
People to work in the business
Example of labor is ?
Farmers
What is capital in production?
Monney to get the business started
An example of enterprise in production ?
the owner
What is opportunity cost ?
When making a business deacons for the cost of not selecting the alternative opportunity cost
what a sole trader is
A sole trader is a business which has only one owner. Also know as a sole proprietor. Can employ people but they will not be
examples of sole trader businesses
Small shop
Plumber
Electrician
Hair dresser
Explain Unlimited Liability
This means that the business and the owner are one legal entity In short if a customer sues the business, they will in fact sue the owner
If the business gets into debt,the owner gets into debt
What types of business ownership have unlimited liability?
Sole traders
Partnerships
what is a partnership business
Partners are all joint owners of the business The partners of the business may do decision making themselves or they may employ manager
What is limited liability
The business and the owners have a separate legal identity Shareholders can only lose the value of the money that they It will protect the stockholders personal access
what is a limited company (ltd)
This is were the company’s decide who buys shares
what is a Public Limited Company (plc)
This means that you have limited liability Company has its own legal status
what is a not-for-profit organisation
They are set up to achieve objects other than profit this most commonly to benefit others they make there funds by doing fun raisers
what is a business stakeholder
A stakeholder is defined as anyone who has an interest in a business and is affected by the actions of the business
What Influence of business location
Raw materials Employment Competitors Infrastructure Proximity 2 target market Finance
What is a business plan?
A document which sets out the future plans for a business It is how an entrepreneur will explain how they will turn their idea into a successful business The entrepreneur may then show the plan to a bank to ask for a business loan
What is organic growth
• Organic growth means that the business has grown from within
What is inorganic growth
A business may decide to grow quicker and so it will decide to merge or takeover another business
What is economies of scale
Economies of scale occur when unit costs or average costs fall as a result as an increase in the level of output of the business
