Purpose and nature

• Why is it important for businesses to understand customer needs?

  To meet customer expectations and succeed
• What are the types of changes in the business environment?

  • Technological change
  • Economic change
  • Legal change
  • Environmental expectations
• What is an example of technological change affecting businesses?

  Changes in advertising methods
• What economic factors can impact a business's success?

  Interest rates, inflation, and GDP
• How can legal changes affect a business?

  By increasing costs or affecting product demand
• What is an example of a legal change that can affect businesses?

  Changes to minimum wage laws
• Why must businesses consider environmental expectations?

  Customers may prioritize ethical issues
• What characteristics do successful entrepreneurs possess?

  • Hardworking
  • Organised
  • Innovative
  • Willing to take risks
• What does it mean for an entrepreneur to be hardworking?

  They work long hours and handle various tasks
• Why is being organised important for an entrepreneur?

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

  They generate new ideas to satisfy customers
• What risks do entrepreneurs take when starting a business?

  Money, time, and possibly their old job
• What are common objectives for entrepreneurs starting a business?

  • Be their own boss
  • Have flexible working hours
  • Follow an interest or hobby
  • Increase income and quality of life
  • Fill a market gap
  • Escape an unhappy job
  • Fulfil an ethical or social goal
• What are financial objectives for entrepreneurs?

  Goals related to money, like profit
• What are non-financial objectives for entrepreneurs?

  Goals unrelated to money, like satisfaction
• What are the three sectors of business?

  • Primary Sector: Extracts raw materials
  • Secondary Sector: Manufactures goods
  • Tertiary Sector: Provides services
• What does the primary sector do?

  Produces or extracts raw materials
• What is an example of a business in the secondary sector?

  Food manufacturers like Heinz
• What does the tertiary sector provide?

  Services to customers
• What are the four main business functions?

  • Marketing
  • Operations
  • Human Resources
  • Finance
• 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
• 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 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 choose another option
• What is an example of opportunity cost in business?

  Choosing between two office locations
• What are the reasons for starting a business?

  • To produce a good
  • To provide a service
  • To distribute products
  • To benefit society
  • To fill a market gap
  • To fulfil a business opportunity
• 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 desire but can live without
• How do wants differ from needs?

  Wants are unlimited; needs are limited