Purpose and nature

• FOPS are the resources that a business uses to provide their goods or services
• FOPS

  C - Capital

  • Machinery and equipment

  E - Enterprise

  • Skills of people in the business

  L - Land

  • (Location)

  L - Labour

  • Skills + Number of employees
• Opportunity cost - The next best alternative

  Eg. If we stay in, we sacrifice the enjoyment of going out
• Characteristics of an entrepreneur

  • Innovative
  • Risk taker
  • Hard working and determined
  • Organised
• Primary sector:

  • Farms, Fishing ...
  • Use of raw materials
• Secondary sector

  • Use primary resources and convert into products
  • Manufactures, Printers
• Tertiary sector

  • Final stage of production
  • Sells the product
  • Eg. Shops
• GDP - measures all the income earned in a country's economy