the purpose and nature of business

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  • Created by: ft28
  • Created on: 08-05-20 18:42
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  • reasons  for starting business
    • pursue an interest
    • to be their own boss
    • to provide a service or a product to benefit others
    • escape an uninteresting job
    • work from home
    • to keep all the profit
  • business- an activity that requires he organisation of resources to achieve a reward
    • goods- physical tangible products such as food, devices
    • services-non physical products such as hairdressing
    • need-somethingyou would struggle to live without e.g water, food
    • want-somethingyou don't need for daily life e.g an iPad, orange juice.
  • industry sectors
    • primary sector- the first stage of production uses raw materials e.g fisherman
    • secondary sector - manufacturing stage
    • tertiary sector- provides services like schools, hospitals, shops
  • factors of production
    • landr
      • natural resources
      • territory
    • enterprise
      • risks  taken to create things
    • capital
      • schools
      • equipment
    • labour
      • people
  • labour
    • people
  • opportunity cost
    • when you choose between things and  the one you don't choose is the opportunity cost.
  • enterprise
    • the creation of a business to meet the needs and wants of the customers
      • entrepreneur
        • Someone who takes the risk of starting their own business

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