Nature of Business 1: Business: Pearson (Edexcel): GCSE (9:1)

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