Chapter 1 - Enterprise and Business Functions Flashcards
(21 cards)
Define the term ‘Entrepreneur’.
An entrepreneur is someone who identifies a business opportunity and takes action to realise their vision, typically involving starting a new venture or innovating within an existing one.
What is an enterprise?
An enterprise is simply a term for a business. It could also refer to the actions of a risk taker who starts their own business up, ‘an enterprising person’ also referred as an entrepreneur.
State the factors of production.
Land
Labour
Capital
Enterprise
Explain what land is and what it refers to.
“land” as a factor of production refers to all natural resources used in producing goods and services. This includes the physical land itself, as well as natural resources like minerals, water, forests, and oil.
Explain what labour is and what it refers to.
labour is a factor of production that refers to the physical and mental effort of human beings used in the production of goods and services. It encompasses the skills, abilities, and time contributed by workers to create value.
Explain what capital is and what it refers to.
“capital” refers to man-made resources used to produce goods and services. These are distinct from financial capital, which is commonly understood as money. Capital in this context includes items like machinery, tools, buildings, infrastructure, and technology.
Explain what enterprise is and what it refers to.
“enterprise” refers to a business or undertaking, often involving risk and innovation.
Explain the roles of the entrepreneur in making business decisions.
identifying opportunities and making strategic plans to leading teams and navigating risks. They are essentially the driving force behind innovation, resource allocation, and the overall direction of a business. Entrepreneurs make decisions about everything from product development to market expansion, always considering both short-term gains and long-term sustainability.
Give characteristics of an entrepreneur.
Hardworking
Diligent
Reliable
Competent
Risk-taker
Innovation
Initiative
Persistence and drive
Leadership skills such as motivation and communications
Energy and enthusiasm
What is value added?
Adding value means a business can sell the product at a price higher than what it took to produce to gain extras.
Why would a entrepreneur be concerned with adding value?
It helps the individual to make a profit. This may also be the case if the extra sum of money is placed forward on an existing product that is priced on top of the additional costs.
How else can a business add value to its product?
Through creating or developing an image making it appear more valuable and vibrant, appealing to sales
What does a constraint on a business mean?
A restraining factor…
Limiting business operations…
Limitation on a business…
Restriction on a business…
Barrier to business operations…
Challenge facing a business…
Obstacle to business growth…
Business hurdle…
Business impediment…
Business restriction…
Operational constraint…
4 factors effecting a business.
The economy
Environment
Legislation
Competition
PESTEL
What are the main functions/departments of a business?
Accounting and Finance
Operation management and production
Marketing and support service
Human Resource Management
Customer Service and Sales
Explain function of Accounting and Finance.
ACCOUNTING
Recording Transactions
Reporting Financial Information
Providing Information for Decision Making
Budgeting and Forecasting
FINANCE
Raising Capital
Investment Decisions
Managing Cash Flow
Financial Planning and Control
Dividend Decisions
Explain the functions on Marketing.
Market Research
Product Planning and Development
4P’s
Customer Service:
Providing support and assistance before, during, and after the sale to ensure customer satisfaction and loyalty.
Market Segmentation
Brand Management
Advertising
Explain the functions on production.
Procurement of Raw Materials
Quality Control
Cost Control
Identify Business functions and briefly explain their role in a business.
Marketing: Promoting and selling products or services.
Production: Creating goods or services.
Operations Management: Overseeing the production process to ensure efficiency.
Accounting and Finance: Managing financial records and resources.
Customer Service: Assisting customers before, during, and after purchases.
Sales and Support Services: Selling and providing support for products or services.
What is the role of Operation Managements.
A business implements a system to track and optimise the use of machinery and raw materials in its production line.
