What Is A Business Activity? Flashcards
What is a business?
A business is an organization that provides goods and services
What does private sector mean?
Organisations owned by individuals or groups of individuals
What does public sector mean?
Organizations owned by local government.
What is a private enterprise?
They are a private sector business. They’re objective is often to make money, profit for the owners.
What is a social enterprise?
Businesses in the private sector that are non-profit making. Like:charities and pressure groups.
What is a public enterprise?
They are public sector organisations. Often providing health care, education, policing and environmental services. They’re main goal is to provide thing other businesses fail to.
What is a stakeholder
An individual or group that takes interest in the organization.
Name 8 business stakeholders
Owners-the business belongs to them
Employees-they work for the business
Managers-they help run different departments of the business
Suppliers-provide the firm with raw materials,parts and utilities
Customers-buy the products the firm sells
Government- has interest in all businesses, providing: employment, wealth and pay tax.
Financiers-lend money to the firm (banks,private investors),financially interested.
The local community
Who is an entrepreneur
A person who takes risks and sets up the business; individuals who venture their own money to the business.
- innovators
- organisers
- decision makers
- risk takers
