Unit 1.1 - Business activity Flashcards
Define goods
Goods are physical items such as a bed or chair
Define services
Services are something done for you by someone else such as an electrician
Define wants
Something that you would like to have such as designer clothes
Define needs
Needs are something you must have to survive such as food or shelter
Identify and define the business sectors (3)
Primary - obtaining raw materials
Secondary - manufacture goods from raw materials
Tertiary - provides services
Identify and describe the factors of production (4)
Capital - machinery and equipment
Enterprise - organising and ideas
Labour - workers
Land - materials and the physical location
Define opportunity cost
Cost of the choice made, it is what you can’t do as you have chosen something else
Identify the different entrepreneur objectives (6)
Earn more than current job Leave uninteresting job Spot a gap in the market Be their own boss Hobby or interest Flexible working hours
Features of a good entrepreneur (4)
Hardworking
Organised
Innovative
Risk taker
Define entrepreneur
Someone who has an idea for a business and starts a business with the idea
