business Aqa

entrepreneur

A person who takes risk in the hope of reward

entrepreneur objectives:(8)

to be their own boss, keep all profits, financial stability, to follow an interest, gap in the market, flexible working hours, to help society.

goods

physical/tangible product (cars)

social enterprise

to help society rather than making profit.

services

intangible products (hair-cut)

customer

someone who buys a product from a business

consumer

someone who uses goods and services produced by a business

4 factors of production

land, labour,capital, entrepreneurship

capital

money and machinery put into the business

enterprise

the skills of the people involved in organizing and managing a business venture, including risk-taking and innovation.

land

the physical site which the business is located

labour

the skills and numbers of workers used in the business

opportunity cost

cost of missing out on the next best alternative

interest

the money paid by banks as a reward to attract people to save with them.

characteristics of an entrepreneur:(4)

innovative, risk taking, hard working, organised

sectors of industry

primary, secondary, tertiary

primary sector

extraction of raw materials and natural resources.

secondary sector

manufacturing and processing of goods from raw materials

tertiary sector

provision of services to consumers and other businesses

the functions of a business

marketing, operations, human resources, finance

interest rates

cost of borrowing and the reward for saving

inflation

rate at which prices are increasing

GDP

gross domestic product- measures all the income earned in a country’s economy per year

demand

the amount of product that customers wish to purchase over a period of time

Changes in the business environment (PEST)

political change, economic/environmental change, social change, technological change

sole trader

managed by one person

advantages of a sole trader

easy to set up, keep all profits, make all decisions