• Created by: almas_ali
  • Created on: 15-12-17 09:22
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  • 1.1 The Purpose and nature of Businesses
    • The Economic Problem
      • one problem is the infinite wants to outweigh finite resources.
      • Businesses aim to provide what consumers want and need. they must do this with limited resources, so efficiently as possible and with as little waste as possible
    • Entrepreneur
      • Innovative
      • Determined
      • Punctual
      • Risk Taker
      • Organised
      • A person who sets up a business or businesses by taking on financial risks.
    • Choices and Opportunity Cost. Goods and Services
      • Choices are important due to limited resources.
      • Opportunity cost is the thing we gave up in order to get the thing we chose
      • Tangible is a physical item you can touch and see.
    • Factors of processing
      • Capital- Goods used in the supply of each products. e.g. Tech
      • Labour- the human input into the production process
      • Land- Natural resources available for production
      • Enterprise- entreprenures organise factors of production and take risks
  • the difference between a good and a service is that a good is tangible and a service is intangible.


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