UNIT 1 GCSE BUSNIESS Flashcards
Business in the real world
What is a business?
A business is an organization that produces a good or supplies a service
What is a good?
A good is a physical product, such as a car.
List 3 reasons why a entrepreneur might want to start a business?
be their own boss and make their own decisions
➜ They need a job and starting their own business is one way of making sure
that they are employed
➜ They have an interest or hobby
What is a service?
A service is an intangible item (that is, it is something that you cannot physically touch), such as financial advice, Uber
The primary sector?
The primary sector is made up of organisations that are at the first stage of production and use raw materials. Farms, oil exploration companies and fishing fleets are primary businesses.They make up 2% of the UK economy
The secondary sector?
second stage of the production
use primary resources and convert them into products
Examples of secondary businesses are manufacturers and printers.
The tertiary sector?
final stage and is made up of organisations that provide services, for example, fast food stores
What are the 4 factors of production?
Capital, Enterprise , Labour and Land
C- capital?
capital refers to the equipment used eg. machinery , tools etc
E- enterprise?
enterprise refers to the skills of the people involved in the business to identify business opportunities and bring together resources to meet these opportunities.
L- land?
land represents the natural resources and physical space the production or service happens
L- labour?
labor represents the human effort and skills applied in the production process
➜ OPERATIONS?
A business that makes resources into outputs of either a good or service
➜ MARKETING AND SALES?
Ensuring customers values are met and represented in product and service
➜ HUMAN RESOURCES?
To provide either good or service it will require employees to be hired and trained then managed
