Enterprise: Business: Pearson (Edexcel): GCSE (9:1)

Entrepreneur

A person who sets up a business and takes on risk

Enterprise

The motivation to set up a business

Business decisions

Important choices, needing judgment, that have to be made by people running a business

Resources

All the physical things or people and work that are needed to operate a business

Human resources

People in a business, employees

Risk-taking

Activity where the outcome is often unknown, the possibility of loss or failure

Value-added

The difference between the cost of goods and services bought in by the business and the price they are sold at, which creates possible profit

Tangible

Things that can be seen and touched, e.g. Goods, office furniture, vehicles

Intangible

Things that cannot be seen or touched e.g. Services, Computer skills, training

Owner's reward

Profit in return for risking capital

Viable business model

A business structure and strategy that is predicted to be successful

Value

What something is worth in money

Product innovation

Creating a new product

Process innovation

Creating a new way to make a product or supply a service