bs chap 1 Flashcards
(16 cards)
What are Needs?
Basic human requirements for survival, like food, water, shelter.
Universal and helps define priorities.
What are Wants?
Desires that are unlimited but not essential for survival.
Drive economic activity and innovation.
What is Scarcity?
Limited resources to meet unlimited wants.
Leads to resource prioritization.
What is Opportunity Cost?
The next best alternative foregone when making a choice.
Helps in rational decision-making.
What is Specialisation?
Focusing on what a business/worker does best.
Higher efficiency, productivity.
What is Division of Labour?
Work is divided into parts for efficiency.
Increased output and expertise.
What are Business Objectives?
Targets a business aims to achieve (e.g., profit, survival, growth).
Provide direction and strategy.
What is Added Value?
Selling price minus the cost of inputs.
Increases profit margin.
What are Stakeholders?
Individuals/groups affected by business decisions (e.g., owners, workers).
Encourages balanced decisions.
What is a Sole Trader?
Business owned and operated by one person.
Full control, keeps all profits.
What is a Partnership?
A business owned by 2–20 people.
Shared workload and decision-making.
What is a Private Ltd Company?
Company with shares not sold to the public.
Limited liability, control retained.
What is a Public Ltd Company?
Company whose shares are traded publicly.
Raises large capital, higher status.
What is a Franchise?
Business based on using the brand/model of an existing company.
Lower risk, existing brand loyalty.
What is an Entrepreneur?
A person who takes risk to start and run a business.
Independence, profit potential.
What is a Business Plan?
A written document outlining business objectives and strategy.
Helps secure finance, clear focus.
