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Flashcards in Key terms Deck (18):
1

Define Entrepreneur

An entrepreneur is a person that sets up a business and takes risks with the intent of making a profit.

2

Define Enterprize

A company/business or a business endeavour/project of a bold and complex nature.

3

Define Factors of production

Factors of production are the inputs of a business which produce the outputs of services or goods

4

Name the four factors of production

Land
Capital
Labour
Enterprise

5

Why do businesses need land?

businesses need land on which to make their product or service and to distribute it on.

6

Why do businesses need labour

To manufacture the good or to carry out the service

7

Added value

the difference in cost between producing the product and selling the product.

8

What other factors affect added value

Quality, Brand name, target market, celebrity endorsement etc

9

Define Capital

Assets within a business, such as factories and equipment

10

Define Revenue

Selling price x Units sold
Revenue is the money generated for selling a good or service before deducting expenditures

11

Stakeholder (Not to be mistaken with SHAREholder)

Individuals or group of individuals who are interested in the decision of the business because it has some impact on them.

12

Name a few stakeholders

customers, investors, employees, competitors
(often situational)

13

Define constrainsts

a restraining factor of a business

14

What are the business sectors?

(Triple P, S, double T)

Primary
Secondary
Tertiary
Third
Public
Private

15

Chain of production

Stages a product must go through until it reaches it's final customer

16

Describe the Primary Sector

(6% of the UK's output)
Extractive services
Agriculture, fishing, mining, oil and gas extraction

17

Describe the Secondary Sector

(14% of UK's output)
Manufacturing, the conversion of raw materials into products whether finished or semi finished.

18

Describe the `Tertiary Sector

(80% of Uk Output)