What Is A Business Flashcards
What is a entrepreneur
An individual with an idea and the skills to start a business. They are willing to accept risk
What is an enterprise
The process by which new businesses are formed and new products and services are created
Name 5 key characteristics of a entrepreneur
- determination
- risk taking
- vision
- relevant skills
- can spot opportunities
Advantages of becoming an entrepreneur
- To become their own boss
- To keep more of the profits
- To work their own choice hours
How do governments support new firms?
- lower business taxes
- legalisation to encourage competition
- free access to business advice
What is the aim of a private sector enterprise?
To survive by making profit
An example of a private sector enterprise is…
Sole trader or thousands of shareholders in PLC
What is the aim of a private sector enterprise
To provide services to the community
What are needs
When you require something essential or important
Explain wants
Something you desire to have or possess
What is scarcity
When you have high demand for a product or service but have a lack of resources to fulfil the demand
What is opportunity cost
The value of the next best alternative forgone when making a choice
Difference between a good and a service
Goods are psychical objects which are tangible unlike services which are intangible
Name the four factors of production
Capital
Entrepreneurship
Land
Labour
How do you improve production efficiency
- More staff training
2. Advances in technology
