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Flashcards in Chapter 1 (Enterprise) Deck (15):
1

what are Consumer goods?

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

2

What are Consumer services?

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

3

what are Capital goods?

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

4

What are the factors of production?

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

5

what is Added value?

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

6

What is an Entrepreneur?

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

7

Explain the 6 characteristics of a successful entrepreneur

- 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.

8

What are the challenges faced by entrepreneurs?

-Identifying successful business opportunities
-Sourcing capital
- Determining a location
-Competition
-Building a customer base

9

Why do new business often fail>

-Lack of record keeping
- Lack of working capital
-Poor management skills
-Changes in business environment

10

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

-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

11

What is social enterprise?

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

12

What are the social enterprise objectives?

*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

13

what is triple bottom line?

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

14

What is a need?

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

15

What is a want?

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