Business Terms Flashcards
(31 cards)
What is business?
Legal activity which involves buying and selling commodities, products or services.
What are the four factors of production?
Land, Labour, Capital, Enterprise.
What is Land Factor?
Natural resources which are extracted for human use or consumption.
What is Labour Factor?
Human resources and individual skills used to help develop a product.
What is Capital Factor?
Man-made resources which are used for improving a business. This includes vehicles, furniture, buildings etc.
What is Enterprise Factor?
Risk-taking of an entrepeneur. The person who assumes all responsibility for the success or failure of the business.
What are the two category or Goods?
Capital Goods and Consumer Goods.
What is Capital Goods?
Tangible assets used to help produce products for the business to use.
What is Consumer Goods?
Products that are purchased buy the general population to satisfy their own needs and wants.
What are the three categories of Consumer Goods?
Durable Goods, Non-Durable Goods, Services.
What are Durable Goods?
Goods made to last a long time. For example: TV, Computer, Fridge, Bike.
What are Non-durable Goods?
Products that have a low shelf-life which requires daily, weekly or monthly purchases. For Example: Food, Drinks, Toiletries.
What are Service Goods?
Intangible products or services contained within the virtual space. For example: Online Banking/Shopping/Servers.
What are the three Business Sectors?
Primary, Secondary, Tertiary.
What is the Primary Sector?
Extraction of raw materials to be used by the Secondary Sector.
What is the Secondary Sector?
The manufacturing and industry side which deals with processing raw materials into products or goods.
What is the Tertiary Sector?
Businesses that provide a service for consumers to purchase.
Name some qualities an Entrepenuer can have.
Discipline, Confidence, Open Minded, Self-starter, Competitive, Determined, Strong People Skills, Strong Work Ethic, Passion, Creativity.
Why may a business fail?
Lack of finance, Poor Leadership, Poor Planning, Tough Competition, Government Policies.
What is the Private Sector?
Businesses that are free from government control or ownership.
What is the Public Sector?
Business that are owned and operated by the government to provide services to the citizens.
What is a Sole Trader?
A business owned by one person, who is responsible for all finances and contracts. The structure is stable and can easily change.
What is Partnership?
When 2 or more people operate a business as co-owners and share income. The public doesn’t need to know your profits and the structure can be easily changed.
What is Private Limited Company?
It’s a small business with an employee limit of 50. Liabilities are limited to company shares, and restricts shareholders from publicly trading shares.
