BUSINESS AS LEVEL Chapter 1 - Enterprise

Factors of Production

Land, Labour, Capital, Enterprise

Triple Bottom Line

The three objectives of a Social Enterprise: economic, social and environmental

Consumer goods

The physical and tangible goods sold to the general public i.e smartphone

Capital Goods

The physical goods used by industry to aid in the production of other goods and services, such as machines

Impact of enterprise on economy

-Employment Creation -Economic growth -Firm's survival and growth -Innovation and technological changes -Exports -Personal development -Increased social cohesion

Entrepreneur Challenges

-Identifying Opportunities -Sourcing Capital -Determining a Location -Competition -Building a customer base

Entrepreneur Characteristics

-Innovation -Commitment and Self-motivation -Multi-skilled -Leadership skills -Self confidence and an ability to bounce back -Risk taking

Main reasons for Business Failure

-Lack of record keeping -Lack of cash and working capital -Poor management skills -Changes in the business environment

Consumer Services

The non-tangible products sold to the general public i.e insurance

Social Enterprise

a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners

Creating Value

increasing the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for

What does a business do?

produce consumer goods or services that meet the needs of customers

Opportunity Cost

the benefit of the next most desired option which is given up

Added Value

the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for