Principles of Business - Grade 11 Study Guide

Flashcards covering the core concepts for a Grade 11 business end-of-term test.

Factors of Production

Land, labor, capital, and enterprise.

Payments for Factors of Production

Rent, wages, interest, and profit.

Fixed Capital

Long-term assets.

Working Capital

Capital used for day-to-day operations.

Characteristics of Entrepreneurship

Risk-taking, decision-making, and organization.

Primary Production

Extraction of raw materials.

Secondary Production

Manufacturing or processing of goods.

Tertiary Production

Providing services.

Subsistence Production

Producing enough for personal use.

Domestic Production

Producing goods within a household or small community.

Surplus Production

Producing more than what is needed for personal or local use.

Internal Growth

Growth from within the company (e.g., increased sales, new products).

External Growth

Growth through mergers, acquisitions, or joint ventures.

Horizontal Integration

Acquiring a business in the same industry and at the same stage of production.

Vertical Integration

Acquiring businesses involved in different stages of the production process.

Conglomerate Integration

Acquiring businesses in unrelated industries.

Backward Linkages

Businesses that supply inputs to another business.

Forward Linkages

Businesses that are customers of another business.