Business Concepts Flashcards

Front

Difference between a consumer good and a producer good

Back

Consumer goods are used by an end consumer, such as a TV or a sofa. Producer goods are used by businesses to produce other goods or provide services, like machinery or tools.

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Difference between the public sector and the private sector

Back

Private sector businesses are operated by private individuals and are run for profit. Public sector organizations are owned by the government or funded by it, and they provide services using public funds.

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Characteristics of an entrepreneur

Back

Entrepreneurs often share characteristics such as initiative, organizing the business, being innovative, hardworking, risk-taking, communication, determination, decision making, leadership, and identifying gaps in the market.

Front

Financial and non-financial motives of an entrepreneur

Back

Financial motives include income and profit. Non-financial motives include being your own boss, independence, and personal satisfaction.

Front

One risk of business enterprise

Back

Job security loss, low sales, unexpected events, financial loss, failure.

Front

One reward of business enterprise

Back

Profit, satisfaction, building a successful business, positive feedback, control.

Front

Definition of a business plan

Back

A business plan is a document created by a business or entrepreneur that provides details about each element of the business.

Front

Two components of a business plan

Back

Business idea, aims and objectives, target market, revenue forecast, costs and profit, cash flow, finance sources, location, marketing mix.

Front

Two reasons why a business plan is useful

Back

Minimising risk and obtaining finance.

Front

Difference between a business aim and an objective

Back

A business aim is the overall target or goal, while objectives are the steps to meet the aims.