business in the real world

• What are some reasons an entrepreneur may start a business?

  To produce goods, provide services, distribute products
• What is an example of a business that produces a good?

  Coca-Cola
• What is an example of a business that provides a service?

  Premier Inn
• What is an example of a business that distributes products?

  Tesco
• What is an example of a business that benefits society?

  Charities
• What does it mean to fill a gap in the market?

  Opening a business where none exists
• What are goods?

  Tangible items that can be used and stored
• What are services?

  Intangible actions that cannot be stored
• What are wants?

  Things people would like but can survive without
• What are needs?

  Things required in order to survive
• What are the four factors of production?

  Land, labour, capital, enterprise
• What does 'land' refer to in factors of production?

  Physical land and natural resources needed
• What does 'labour' refer to in factors of production?

  Staff and their skills and qualifications
• What does 'capital' refer to in factors of production?

  Machinery and equipment needed for production
• What does 'enterprise' refer to in factors of production?

  The entrepreneur who creates the business
• What is opportunity cost?

  Something given up to do something else
• What are the three sectors of business?

  Primary, secondary, tertiary
• What does the primary sector do?

  Produces or extracts raw materials
• What does the secondary sector do?

  Makes or manufactures goods
• What does the tertiary sector do?

  Provides services
• What are the four main business functions?

  • Marketing
  • Operations
  • Human resources
  • Finance
• What is the role of an entrepreneur?

  To find and exploit business opportunities
• What characteristic involves working long hours?

  Hardworking
• Why must an entrepreneur be organised?

  To manage daily tasks and future planning
• What does it mean for an entrepreneur to be innovative?

  To come up with new ideas for customers
• Why must an entrepreneur be willing to take risks?

  Starting a business involves financial and time risks
• What is one objective of an entrepreneur?

  To be their own boss
• What is a financial objective?

  Links to money, like making profit
• What is a non-financial objective?

  Links to things other than money
• What can impact the business environment?

  National and international factors
• What is technological change in business?

  Keeping up with rapid changes in technology
• What is economic change in business?

  Impact of interest rates, inflation, GDP
• How can legal change affect businesses?

  New laws may increase costs or demand
• Why must businesses consider environmental expectations?

  Customers' views affect production and resources
• What is a sole trader?

  A business owned by one person
• What is unlimited liability?

  Owner is personally responsible for debts
• What is an advantage of being a sole trader?

  Quick and easy to set up
• What is a disadvantage of being a sole trader?

  Risk of unlimited liability
• What is a partnership?

  A business with 2 to 20 owners
• What is a deed of partnership?

  A document outlining partnership rules