Section 1 - business in the real world Flashcards
Define the term good
A good is something tangible and what you can physically touch for example a glue stick
Describe the difference between needs and wants
Need - is an essential for example water
Want - is something you desire for example a holiday
Give an example of a business type in each sector
a. Primary sector
b. Secondary sector
c. Tertiary sector
a. A farmer or a lumberjack
b. Manufacturing in the mini plant
c. Hospital
What is an enterprise
An enterprise is a business which is for profit
State two reasons why someone might want to become a entrepreneur
.To be their own boss
.So they can keep all profits
State two characteristics a entrepreneur would have
.Risk taker
.Creativity
Name the four factors of production
Capital
Enterprise
Land
Labour
Define Opportunity cost
When you have to make a decision a the one you get rid off is the opportunity cost
Define Limited Liability
When the shareholders are responsible of debt for the business
Define stakeholder
A stakeholder is someone who has an interest or concern in a business
State a non - profit organisation
A charity
Give examples of four stakeholders in a business
Customers
Local community
Suppliers
Employees
