Chapter 1 - Enterprise and Business Functions

Enterprise

A business or a project

Entrepreneur

A risk taker who sets up a business

Characteristics of an entrepreneur

• self-belief and confidence

• persistence and drive

• ability to work under pressure

• creativity and imagination

• ability to be comfortable with risk

• energy and enthusiasm

• leadership skills

What is the factors of production?

The inputs that are used in the production of goods or services

4 Factors of Production

capital, enterprise, land, labour

What is value added?

What a business achieves by ensuring that the price of the finished good or service is in excess of the cost of the inputs

What is a constraint?

A restraining factor on a business, something that limits how a business operates

4 Possible Constraints on a Business

environment, legislation, competition, the economy

Functions within a business

• accounting and finance

• operations management and production

• marketing and support services

• human resource management