Topic 1 Flashcards Preview

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Flashcards in Topic 1 Deck (21)
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1
Q

Good

A

Is a physical product

2
Q

Service

A

Is an intangible product

3
Q

Customer

A

Is someone who buys a product from a business

4
Q

Consumer

A

Is someone who uses goods and services produced by business

5
Q

Entreprenuer

A

Is someone who is willing to take the risk to start a new business

6
Q

Social enterprise

A

Is a business is ser up to help society rather to make profit

7
Q

Resources

A

Are the inputs that businesses use to provide their goods or services

8
Q

Enterprise

A

Refers to the people,who o have skills

9
Q

Interest

A

Is the money paid by banks as a reward to attract people to save with them

10
Q

Primary sector

A

Made up of organisations that are at the first stage of production that use raw materials

11
Q

Secondary sector

A

Made up of organisation that are at the second stage of the production process

12
Q

Tertiary sector

A

Is the final stage and is made up of organisation that provide services for e.g. fast food

13
Q

Interest rates

A

Refer to the cost of borrowing money

14
Q

Inflation

A

Refers to the rate at which prices are increasing

15
Q

Sole trader

A

Is someone who sets up in business on his or her own

16
Q

Advantages of being a sole trader.

A

-It is quick and easy to set up as a sole trader
-make decisions for yourself
You keep all profits for yourself

17
Q

Disadvantage of being a sole trader

A

-It can be stressful making all decisions yourself
-A sole trader needs to handle all aspects of the business
If the business goes wrong you have unlimited liability

18
Q

Profit

A

Measures the difference between the values of a business revenue (sale) and its total cost

19
Q

Unlimited liability

A

Means that the personal possessions of the owners of a business are at risk if there are any problems. There is no limit to the amount of money of the owners may have to pay out

20
Q

Partnership

A

Occurs when two or more people join together in a business enterprise to pursue profit

21
Q

A deed of partnership

A

Is an agreement between partners that sets out the rules of the partnership, such as how profit will be divided and how the partnership will be valued id someone wants to leave