Business REVISION

nature of business

Sector

A part of the economy that provides goods or services

Primary sector

Raw materials or natural resources

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

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

Opportunity Cost

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

Objectives

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