Business

• Business


  Provides goods or services to customers
• Enterprise


  A business or the motivation to start one
• Entrepreneur


  A person who sets up a business and takes on risk
• Goods


  Physical product given to customers in exchange for payment
• Services


  Doing something for a customer in exchange for payment
• Customer


  A person who buys goods or services
• Consumer


  A person who uses goods and services
• Cash


  Money in its physical form
• Assets


  Things that a business owns
• Profit


  "Total revenue minus total costs = positive amount
• Loss


  "Total revenue minus total costs = negative amount
• Accounts


  The records of the financial activity of a business
• Investment


  Putting money into a business
• Debt


  Money that a business owes
• Business plan


  A document outlining how a business is going to start and operate
• Wants


  Things that people would like to have
• Needs


  Things that people must have to live
• Risks


  Dangers or potential losses
• Value


  What something is worth in money
• Sector


  A part of the economy that provides specific goods or services e.g. Education
• Primary sector


  Raw materials or natural resources e.g. Oil
• Secondary sector


  Manufactured goods - things that are made
• Tertiary sector


  Services that are offered
• Factors of Production


  What is needed to produce products
• Factors of Production - Land


  All natural resources, renewable and non-renewable. e.g. Coal, Wood, Animals and Mines
• Factors of Production - Labour

  Work done by people to produce goods and services
• Factors of Production - Capital


  Things that are made to enable production. e.g. Factories, machines and schools
• Factors of Production - Enterprise


  Entrepreneurs who take risks to produce things using the other factors of production
• Opportunity Cost


  The benefit of a course of action which is lost when you decide to do something else
• Objectives


  The specific goals set by a business to reach its aims
• Characteristics of an Entrepreneur


  Motivated, willing to take Risks, organised and innovative
• Objectives of an Entrepreneur


  Financial reward, independence, to fulfill a need for goods or services or have an interest in the area of business
• The Business Environment


  All the factors, both internal and external that affect a business
• Raw Materials


  Unprocessed resources from land
• Specialisation


  Concentrating on providing one good or service
• Resources


  Things that are used to produce goods and services
• Customer service


  The actions of a business that aim to meet the customers needs a fully as possible
• Customer expectations


  What the pre-existing knowledge and experience the customer has about the business and its products
• Positive customer engagement


  When customers have a good experience of interacting with a business, its products and services
• Closing


  Finalising a sale, getting the customer to agree to buy