Zusammenfassung der Ressource
1.1 - The purpose and nature of business
- Keywords
- Good - A physical product e.g. car
- Service - An intangible product e.g. financial advice
- Customer - Someone who buys a product
- Consumer - Someone who uses goods and services from a business
- Entrepreneur - Someone who is willing to take risks
involved in starting a new business
- Entrepreneurship - Refers to the ability to be an entrepreneur
- Social Enterprise - A business that is set up to help society rather than making a profit
- Resources - the inputs that businesses use to provide their goods and services
- Enterprise - Another word for business. Also refers to the skills of people involved in the business to
identify business opportunities and bring together resources to meet them
- Intrest - Is the money paid by banks as a reward to attract people to save with them
- Inters rates - The cost of borrowing money for the reward for saving money (as %)
- Inflation - the rate at which prices are increasing. E.G. if inflation is 2% prices generally grow by 2% that year
- Gross Domestic Product (GDP) - measure all income earned in country's economy that year
- What are the main purposes of a business
- to produce goods for sale to its customers
- Provide services for its customers
- Entrepreneurs:
- take risks
- see an opportunity
- have determination, vision, focus and motivation
- Are their own boss
- Keep all the profits
- Can decide when to work
- The chain of production
Anmerkungen:
- a diamond is mined (primary)
a diamond factory will create a ring (secondary)
a jewellery shop will sell it (tertiary)
This is called interdependence
- primary sector e.g agriculture or fishing
Anmerkungen:
- consists of growing, extracting or converting natural resources into raw materials
- secondary sector e.g construction or manufacturing
Anmerkungen:
- Consists of converting raw materials into products for sale to businesses and individuals
- tertiary sector e.g private services or public services
Anmerkungen:
- Consists of providing services to businesses and individuals
- 4 functions of a business
- operations
- marketing
- human resources
- finace
- Factors
- Land - the physical site the business is
located on and other natural resources a
business can use e.g. mines or crops
- Enterprise - The skills of the people involved in the business to
identify business opportunities and bring together resources to
meet opportunities e.g. skill to drive a factor
- Labour - the skills and number of staff
employed by a business
- Capital - the equipment used to provide
goods or services e.g. tractor on farme's
field
- Opportunity cost - the sacrifice we make when
we decide to do something e.g. spending bus
fare on sweets means walking home.
- When an entrepreneur starts a business they must sacrifice a
regular wage from an employed job to a less secure income of
a new business
- The business environment
- Technological change
- Creates new products and markets
e.g. snapchat or uber
- Economic change
- Interest rate changes, inflation
changes and changes in gross
domestic product
- Interest rates
- Changes in the cost of borrowing money from banks, inflation
is the rate of prices of products are increasing and GDP is the
income the economy is generating
- Legal change
- New laws and regulations that can affect how much it costs
to run a business e.g. businesses must pay a minimum
wage to workers
- Environmental expectations
- customers opinions on how a business and
its products affect the environment