1.1 Enterprise Definitions

Enterprise

• Is the skill needed to make a new idea work.

• A type of business structure that limits personal liability.

• A government program to support small businesses.

• A method of project management for large organizations.

Brand

• A type of product that is sold in bulk.

• A name, design, logo or symbol that makes a product recognisable and distinguishes it from the competition in the eyes of the customer.

• A marketing strategy used to increase sales.

• A legal term for ownership of a product.

Entrepreneur

• An individual who takes the risk to create and run a new business.

• A person who invests in stocks and bonds.

• Someone who works for a large corporation.

• A professional who provides consulting services.

Business objectives

• Measurable targets set by the business, such as sales or profits that have yet to be achieved within a given time period.

• General guidelines that dictate the overall direction of a business.

• Short-term goals that do not require specific metrics for success.

• Broad statements of purpose that do not include specific targets.

Factors of production

• Land, labor, capital, and enterprise

• Money, technology, resources, and management

• Raw materials, finished goods, services, and profits

• Marketing, sales, distribution, and customer service

Market forces

• Forces that only affect supply in a market.

• Forces of supply and demand which determine the price of a product and the quantity bought and sold in a market.

• Forces that regulate government intervention in the economy.

• Forces that only affect demand in a market.

Opportunity cost

• Measures the total cost of all options available.

• Measures the sacrifice made by choosing one option in terms of the next best alternative foregone.

• Measures the benefits of the chosen option only.

• Measures the time taken to make a decision.

Primary sector

• First stage of production and includes extracting or growing resources. E.g. mining, fishing

• Involves manufacturing and processing of goods.

• Focuses on providing services to consumers.

• Concerns the distribution of finished products.

Transformation process

• Involves converting inputs into outputs.

• Is a method of data storage.

• Refers to the process of data deletion.

• Is a technique for data visualization.

Intrapreneur

• An employee who is given the freedom and resources to create new products or services within a company.

• A manager who oversees the daily operations of a business.

• A consultant hired to improve company performance.

• A customer who provides feedback on products.