Business unit 1.1 ; Business activities IGCSE revision

Business

Any organisation that produces goods and services to meet the needs and wants of customers

Entrepreneurs

Someone w

Value for money

A term that is used to describe the relationship between the cost of product and the quality of the product.

Scarcity

Not having enough resources to fulfill the needs and wants

Opportunity cost

The option lost when we made a decision ( the best option for gone )

Resources

Te items and skills used to produce goods and services

Name the factors of productions

Land ; Labour , Capital , Enterprise

Land

Natural resources ( includes climate ; includes mineral ores )

Labour

Human resources ( includes specialised skills )

Capital

Man made Items

Enterprise

Ideas of the entrepreneur

Factors reward

The benefits gained from owning a factor of production E.g. Land => rent and materials

Specialisation

The concentration of production of a particular good or service or a small range of similar products

Division of labour

The assignment of different parts of a manufacturing process or task to specialised workers to improve efficiency

Added value

The difference between the price of finished product and the cost of the materials involved in making it

Production

The business activity of using resources to make goods and services

Business activities

Extract, Manufacture, Transport , Retail