Key terms Flashcards
(18 cards)
Define Entrepreneur
An entrepreneur is a person that sets up a business and takes risks with the intent of making a profit.
Define Enterprize
A company/business or a business endeavour/project of a bold and complex nature.
Define Factors of production
Factors of production are the inputs of a business which produce the outputs of services or goods
Name the four factors of production
Land
Capital
Labour
Enterprise
Why do businesses need land?
businesses need land on which to make their product or service and to distribute it on.
Why do businesses need labour
To manufacture the good or to carry out the service
Added value
the difference in cost between producing the product and selling the product.
What other factors affect added value
Quality, Brand name, target market, celebrity endorsement etc
Define Capital
Assets within a business, such as factories and equipment
Define Revenue
Selling price x Units sold
Revenue is the money generated for selling a good or service before deducting expenditures
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.
Name a few stakeholders
customers, investors, employees, competitors
often situational
Define constrainsts
a restraining factor of a business
What are the business sectors?
Triple P, S, double T
Primary Secondary Tertiary Third Public Private
Chain of production
Stages a product must go through until it reaches it’s final customer
Describe the Primary Sector
(6% of the UK’s output)
Extractive services
Agriculture, fishing, mining, oil and gas extraction
Describe the Secondary Sector
(14% of UK’s output)
Manufacturing, the conversion of raw materials into products whether finished or semi finished.
Describe the `Tertiary Sector
(80% of Uk Output)
