A/AS Level Business Studies - Chapter 1 - Enterprise

Social enterprise

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

Entrepreneur

someone who takes the financial risk of starting and managing a new venture

Opportunity cost

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

Added value

the difference between the cost of purchasing raw materials and the price the finished goods are sold for

Consumer services

the non-tangible products sold to the general public, e.g. insurance services and hotel accomodation

Consumer goods

the physical and tangible goods sold to the general public, e.g. cars, food and drinks, washing machines

Capital goods

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

Triple bottom line

the three objectives of social enterprises: economic, social and environmental