1.1.3 The role of business enterprise Flashcards
1
Q
What is a good?
A
A physical product that can be touched
2
Q
What is a service?
A
Non-physical
3
Q
What is adding value?
A
The difference between the cost of the raw materials/components of producing the good/service and the price that the consumer are willing to pay for it
4
Q
How can you add value?
A
Branding
Quality
Design
Convenience
USP
5
Q
What are the factors of production?
A
Capital
Land
Labour
Enterprise
6
Q
What is enterprise?
A
Skills and characteristics to manage the other three factors and take risks
