Business Flashcards
What are the names of people who start up their own business
Entrepreneurs
What is an entrepreneur
Someone who is willing to take risks to set up their own business
What are the objectives of an entrepreneur
They want to be their own boss and make their own decisions
They want to keep all the profits for themselves
To make sure that they are employed
Name the 4 factors of production
Land
Labour
Capital
Enterprise
What is opportunity cost
The sacrifice we make whenever we decide to do anything
Name characteristics of an entrepreneur
Innovative, organised, risk takers, hard working, determined
What is the primary sector
Is made up of organisations that are at the first stage of production and use raw materials
What is the Secondary sector
Involved in using primary resources and converting these into examples of secondary businesses
What is the tertiary sector
Is the final stage and is made up of organisations that provide services such as estate agents
What are the functions of a business
The nature of its product and how to promote its benefits to potential customers
A price to set its product and where the customers will want to buy it
To produce a good or service
Manage finance
What are the 4 dynamic natures of a business
Technological, economic, legal change and environmental expectation
What are the 4 business ownerships
Sole trader, partnership, company and not for profit
What is a sole trader
A form of business that is owned and managed by one person
What are the advantages of a sole trader
You are your own boss Can decide things quickly Easy to set up Keep all profits Make own decisions
What are the disadvantages of a sole trader
Unlimited liability May lack finance Heavy workload May not have all skills required Difficult to take holiday
