Key Words Flashcards
Good
A physical product that is tangible. E.g. a car
Service
An intangable product. E.g. a hair cut, a bus journey
Customer
Someone who purchases the product from a business.
Consumer
Someone who uses goods and services produced by businesses.
Entrepreneur
A person who is willing to take the risks involved in starting a new business.
Social enterprise
A business that is set up to help society rather than make a profit.
Resources (factors of production)
The inputs that businesses use to provide their goods or services.
Land
The physical site on which the business is based, and the natural resources required.
Labour
The skills available and number of workers employed by a business.
Capital
Investment in equipment required to produce/run a business such as factories and machinery.
Enterprise
The skills of the people involved in the business to identify business opportunities and bring resources together.
Opportunity cost
The cost of having to make one choice at the expense of another.
Primary sector
Made up of organisations that are at the first stage of production and use raw materials. Farms, oil exploration companies and fishing fleets are primary businesses.
Secondary sector
Made up of organisations that are at the second stage of the production process. They are involved in using primary resources and converting these into products. Examples of secondary businesses are manufacturers and printers.
Tertiary sector
This is the final stage and is made up of organisations that provide services, for example, fast food stores, estate agents and delivery companies.
