Chapter 1 (Enterprise) Flashcards

1
Q

what are Consumer goods?

A

The physical and tangible goods sold to the general public. E.g Cars, food and sweets

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2
Q

What are Consumer services?

A

The non tangible goods sold to the general public. E.g hotel accommodation, insurance services and train journeys

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3
Q

what are Capital goods?

A

the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial

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4
Q

What are the factors of production?

A

The resources needed by businesses to produce goods and services:(C.E.L.L)

  • Capital- money/capital goods( main resources used in production
  • Enterprise- Driven force by risk-taking individuals that combines other factors of production to into a unit capable of producing goods and services.
  • Land- not just land but also renewable and nonrenewable resources of nature
  • Labour- manual and skilled labour make up the workforce of the business
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5
Q

what is Added value?

A

Added value is the difference between the cost of purchasing raw materials and the price the finished goods are sold for.

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6
Q

What is an Entrepreneur?

A

Entrepreneur is someone who takes the financial risks of starting and managing a new venture.

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7
Q

Explain the 6 characteristics of a successful entrepreneur

A
  • Innovative: Must be able to carve a new niche market, come out as different from other businesses
  • Commitment and self-motivation:
  • Multi-skilled: Requires many different qualities, such as being keen to learn technical skills, able to get on with people and good at handling money and keeping accounting records.
  • Leadership skills-
  • Self-confidence and an ability to bounce back
  • Risk tacking: must be willing to take risks in order to see results.
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8
Q

What are the challenges faced by entrepreneurs?

A
  • Identifying successful business opportunities
  • Sourcing capital
  • Determining a location
  • Competition
  • Building a customer base
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9
Q

Why do new business often fail>

A
  • Lack of record keeping
  • Lack of working capital
  • Poor management skills
  • Changes in business environment
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10
Q

What are the impacts of enterprise on a country’s economy?

A
  • Employment creation
  • Economic growth: any increase in output of goods will increase the gross domestic product of the economy.
  • Firms’ survival and growth
  • innovation and technological change
  • Exports
  • Personal development
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11
Q

What is social enterprise?

A

social enterprise is a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners.

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12
Q

What are the social enterprise objectives?

A
  • Known as triple bottom line
  • economic: make a profit to reinvest back into the business and provide some return to owners
  • social: provide jobs or support for local, often disadvantaged communities.
  • Environmental: to protect the environment and to manage the business in an environmentally sustainable way
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13
Q

what is triple bottom line?

A

triple bottom line is the three objectives of social enterprise; economical, social and environmental.

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14
Q

What is a need?

A

A need is something that is essential for life. There are five basic needs: water, food, shelter, clothing and medical attention

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15
Q

What is a want?

A

A want is something that people desire to have – wants are not essential for life. Most people have unlimited wants as manufactured items wear out and people always want something

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