Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business > Introduction to Business- Enterprise > Flashcards

Introduction to Business- Enterprise Flashcards

1
Q

what is meant by entrepreneur and enterprise?

A

An entrepreneur is someone who organises a business venture, takes a risk and is responsible for the risks involved.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the four factors of production?

A

Land, Labour, Enterprise and Capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is meant by “land”? (factors of production)

A

natural resources available for production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is meant by “labour”? (factors of production)

A

the human input into the production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is meant by “enterprise”? (factors of production)

A

individuals who organise all other factors of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is meant by “capital”? (factors of production)

A

goods used in the supply of other productions of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

risks of entrepreneurship?

A
  • loss of money
  • heavy workload
  • mental health issues
  • time lost
  • no wages until business works
  • missing out on career opportunities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

rewards of entrepreneurship?

A
  • profit
  • control of company
  • flexibility
  • own boss
  • decide on wages
  • work from anywhere
  • pride and satisfaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

characteristics of an entrepreneur?

A
  • risk taking
  • organised
  • motivated
  • ambitious
  • independent
  • creative
  • hard working
  • leadership skills
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

define adding value?

A

additions or improvements to something which makes it worth much more (larger markup)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

how can value be added?

A
  • high quality
  • craftsmanship
  • prestige design
  • unique and different
  • convenience
  • branding
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

why is adding value important?

A
  • allows entrepreneur to make a profit
  • this gives the entrepreneur the incentive to be creative
  • it allows the business to charge a higher price
  • makes you different and better than the competition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

three types of business activity?

A
  • primary
  • secondary
  • tertiary
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what does primary business activity involve?

A
  • natural resources and raw materials
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what does secondary business activity involve?

A

manufacturing raw materials into products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what does tertiary business activity involve?

A

providing a service OR selling and distributing the finished product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are constraints of a business?

A
  • employee skills
  • finance available
  • legislations
  • competition
  • the economy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

define stakeholders?

A

groups or individuals who have an interest in a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

types of stakeholders?

A
  • banks
  • directors
  • suppliers
  • customers
  • shareholders
  • government
  • communities
  • employees
  • the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are primary stakeholders?

A

stakeholders that directly deal with the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are secondary stakeholders?

A

stakeholders who have an indirect relationship with the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

stakeholder objectives- shareholders

A
  • returns on investments
  • high dividend payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

stakeholder objectives- customers

A
  • pay fair prices for products
  • receive good quality goods/ services
24
Q

stakeholder objectives- employees

A
  • earn fair wages and salaries
  • have a suitable schedule of hours
  • a good working environment
25
stakeholder objectives- government
- receive taxes - boost economical activity - create jobs
26
stakeholder objectives- suppliers
- supply as much as possible - good communication and treatment from businesses -receive payments on time
27
stakeholder objectives- banks
- give out loans with high interest rates
28
stakeholder objectives- local community
- ethical businesses - supporting and giving to community - new job opportunities
29
define the private sector?
the part of the national economy that is not under direct state control
30
examples of private sector companies?
- digital media companies - accountancy firms - hospitality and catering businesses - retail and e-commerce - manufacturing and construction firms - health and beauty services - technology and software developers
31
define public sector?
the part of the economy composed of both public services and public enterprises (government owned)
32
examples of public sector companies?
- healthcare - law enforcement - environmental protection - justice system - broadcasting - transport - public finance
33
what are third sector organisations?
charities and community groups, social enterprises and co-operatives
34
which businesses in the private sector are incorporated?
- private limited company - public limited company - franchises
35
which businesses in the private sector are unincorporated?
- sole traders - partnerships
36
what is a sole trader?
an individual owning a business on their own
37
advantages of being a sole trade?
- own boss - choose wages - complete control - flexibility on hours - easy to set up
38
disadvantages of being a sole trade?
- unlimited liability - no continuity - difficulty getting loans - workload may be heavy - stress and mental health damage
39
what is a partnership?
where a business is started and owned by two or more people
40
advantages of being a partnership?
- shared workload - more finance sourced - more skills inputed
41
disadvantages of being a partnership?
- unlimited liability (unless LLP) - shared control - shared profit - requires Deed of Partnership - no continuity
42
what is a limited liability partnership?
combined features of a partnership with those of a limited company
43
what is a private limited company (Ltd.)?
- owned by share holders - separate legal entity - shares sold to close friends and family - controlled by board of directors
44
what is a public limited company (PLC)?
a company where any member of the public can buy a share on the stock market
45
advantages of being a limited company?
- limited liability - easier to raise finance
46
disadvantages of being a limited company?
- greater admin cost - public disclosure of company information
47
what is a franchise?
a business with well-known brand name lets a person or group of people set up using that brand.
48
why would someone want to be a franchisee?
you want to be in the business industry but do not want to take the risk of starting your own business
49
advantages of being a franchisee?
- little to no experience in the industry is needed (all training provided) - existing customer base and brand awareness -lower risk than starting own business - support from franchisor
50
disadvantages of being a franchisee?
- limited creative opportunities - investment and start- up costs can be expensive - contracts aren't always permanent - financial information shared with franchisor - still have to do a lot on your own (find land, research market etc.)
51
what is a multinational corporation (MNC)?
a business which operates in many countries
52
advantages of MNCs?
- provide job opportunities - can boost the economy - production costs can be reduced - good quality products - growth is high - new inventions - decrease product prices
53
disadvantages of MNCs?
- sweat-shop labour - local companies may be driven to failure - increase pollution - build legal monopolies - import skilled labourers, reduces fair chance on locals
54
what is a co operative
- owned by members - ran by it’s members - profits are shared among members (not a charity or not for profit organisation)
55
advantages of a co operative
- legally straightforward - cheap to set up - all involved are working towards the same goal - limited liability for members
56
disadvantages of co operatives
- capital may be small - lenders may be reluctant to lend - weak management is possible - large amounts of decision makers

Business (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions