1 - Business in the Real World

• What is a good?


  A good is a tangible or intangible item that is produced and consumed to satisfy a want or need.
• What is a service?

  An intangible product or action that is provided to fulfill a need or desire.
• What is an entrepreneur?

  An entrepreneur is a person who starts and manages a business, taking on financial risks in order to do so.
• What is the difference between a need and a want?


  Need is something you can’t live without and you need it to survive. A want is something that isn’t a necessity.
• What reasons are there to start your own business?

  independence, being your own boss, work hours flexibility, pursue passion
• List the four factors of production?

  Land, labor, capital, enterprise.
• What is an opportunity cost?

  The value of the next best alternative that is given up when making a decision.
• What is a sole trader?

  A sole trader is a business structure where an individual runs and owns the business, assuming all legal and financial responsibility.
• what is a partnership?


  A legal agreement between 2 - 20 individuals or entities to jointly operate a business and share its profits and losses.
• What is an aim?

  A goal or objective.
• What is an objective?


  A specific goal or outcome.
• What is a business plan?

  A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.
• Why does a business plan need updating regularly?

  To adapt to any new laws, wether you have achieved any objectives or aims, if aims and objectives change
• What is a variable cost?

  A cost that varies with the level of production or sales.
• What is a fixed cost?

  A cost that does not change with the level of production or sales.
• What is a stakeholder?

  A stakeholder is a person or group that has an interest or concern in a particular project, organization, or system.
• What is the formula for profit?

  Profit = Revenue - Cost