unit one Flashcards
what are the 4 factors of production?
land, labour, capital, enterprise
an example for each of the 4 factors of production?
a office block, or a farm would be land.
labour would be the work force you have.
capital is anything to do with money, for example the machineary you have.
enterprise is the thing that brings them all together.
why is business location important?
its important becuase you need to be close to the target market.
its also important because you need to be accessable to the what you are selling or you need to be able to send your stuff to be sold.
what should a business plan contain?
the business costs,
the recources needed,
the workers,
target market,
profit forecast,
business objecives,
business aims.
why are business plans important?
business plans are important because they focus the business aproach and mean that everyone knows what they are meant to be doing.
what are the two types of costs?
variable costs, these change depending on how well the business does e.g. staff bonuses
fixed costs, these dont change no matter how well the business does e.g. rent
what is non operating revenue?
The revenue from anything that is not your sale an example of this is investments.
what is operating revenue?
the revenue you get from sales
examples of variable costs
how much you order from your supplier
how many staff you take on
how much bonus you give to your staff
tax
example of fixed costs
rent
how to work out total revenue?
oporating revenue + non operating revenue
characteristics of an entrepreneur
Innovative
Risk taker
Hard worker
Organised
Determined
Persuasive
Leadership
Lucky
what is an entrepreneur?
an entrepreneur is someone who takes a calculated risk by starting a business
why would someone chose to start a business?
to make money,
to turn a hobby into a business
what does GDP stand for
Gross Domestic Product
Whats the diffrence between a good and a service
a good is something tangible where a service is an action which is non tangible.
what is a service
a service is where you pay for the skills of somebody and its non tangible
what is a good
a good is a tangible object you buy
what are the three business sectors
Primary
Secondary
Tertiary
What is done in the Primary sector
The primary sector is where raw materials are harvested, for example farming or a coal mine
What is done in the secondary sector
The Secondary sector is where goods are manafactured or goods are bought and sold
What is the Tertiary sector
The Tertiary sector is where a service is provided, E.G. banks ,teachers, docotors
what is the public sector?
Public secotor – controlled by the government E.G state schools, hospitals and libraries (TAX run)
what is the private sector?
private secotor – aim to make a profit, from small local businesses to large businesses.
