Entrepreneurs Flashcards
(25 cards)
What are entrepreneurs?
Entrepreneurs are people successfully develops and manages their own business using their skill and mind.
Give two examples of American entrepreneurs.
John D Rockefeller (Standard Oil Company)
Henry Ford
For Motor Company
Give three examples of British entrepreneurs.
Simon Cowell
JK Rowling
James Dyson
What qualities should entrepreneurs have?
Creative Energetic Enthusiasm Initiative Risks Decision Maker
What do entrepreneurs need to decide?
Their method of production. They use factors of production to complete their tasks.
Give four examples of factors of production.
Land
Labour
Capital
Enterprise
What is land (factor of production)?
All natural resources (minerals, raw materials).
What is labour (factor of production)?
All Human Resources
What is capital (factor of production)?
Man made aids to production (machinery, equipment)
What is enterprise (factor of production)?
Entrepreneurial ability
What is job production and when is it used?
It is the method of production which is used to complete one job at a time. It is usually used when products are unique and on a small scale.
When would you use job production?
Wedding dresses, customised cake etc.
Three advantages of job production.
- Sell for premium price
- Worker satisfaction, less problems and absenteeism
- Goods already ordered and are possibly paid for and have already been sold improving cash flow
Three disadvantages of job production.
- highly skilled workers-more expensive
- Specialist equipment may be needed for one job and not the next
- production is slow, waiting longer
What is batch production?
A group of identical products that are made at one time and go onto the next stage of production together.
Three advantages of batch production.
Workers are put where their skill is
Production levels of different can be altered to meet demands
Raw materials are bought in bulk which saves money.
Three disadvantages batch production.
Any mistakes the whole batch can be ruined
You need storage space for finished goods and raw materials
There is downtime while the machines are being changed from making one product to another
What is flow production?
It takes place in a continuous process. It flows from one process to the next using a line method.
Three advantages of flow production.
Productivity high and unit costs low
Unskilled workers low wages
Large amounts of identical products can be made
Disadvantages of flow production.
Boredom can lead to mistakes and demotivation and absenteeism
If there is a fault the whole production may have to be stopped.
High cost of machinery in short term
What is the money received from customers called?
Revenue.
What is the break even point ?
When the total revenue equals the total cost
What on a graph represents loss
The total cost curve above the total revenue curve
What on a graph represents profit
When the total cost curve lies below the total revenue (area in between)
