Introduction to Business- Enterprise Flashcards
What is an entrepreneur?
A person who uses their initiative, manages, and takes on the risks of a business.
What is meant by enterprise?
The process by which new businesses are formed in order to offer products and services in a market.
What are the four factors of production?
Land, Labour, Capital and Enterprise
What does ‘land’ stand for in FOP?
Natural resources
What does ‘capital’ stand for in FOP?
Buildings, machinery and tools.
What does ‘labour’ stand for in FOP?
All of the human resources available regardless of the age and skill of the worker.
What does ‘enterprise’ stand for in FOP?
The entrepreneur who organises the other three factors.
State four qualities of an entrepreneur.
Leader
Enthusiastic
Confident
Risk taker
Motivated
What is adding value?
Adding value is the difference between the price of the finished product/service and the costs involved in making it.
What is a benefit of adding value to a product/service?
It creates a point of difference from the competition.
What is the role of an entrepreneur?
They decide what is made, how it is produced, finds the finance to fund the business and decides what price the product will be sold at.
