Business revision notes


Key Definition

Entrepreneur-Define                                  Tangible-Define 

Enterprise-Define                                        Intangible-Define

Innovation-Define                                       Capital-Define

Invention-Define                                         Labour-Define

Risk-Define               Business failure-why might this happen  

Reward-Define          Lack of security-why might this happen

 Land-Define               Financial loss- why might this happen


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Key Definition Answers

Entrepreneur: An individual that is willing to take risks with the money they invest to start up a business

Enterprise: A business,company or entrepreneurial activity

Innovation: Adapting an idea that already exist

Invention: An original idea

E-commerce: Buying/Selling products online

Risk: The chance of a negative outcome

Reward: The chance of a positive outcome

Land: The natural Resources available to the business (Hint: they are not made by humans 

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Key Definition Answers pt2

Tangible: Products that are phyical (aka goods) e.g things you can touch

Intangible: Products that are not phyical (aka services) e.g things you can't touch

Capital: This is needed to assist workers in the production of goods and services (Hint: these are made by humans

Labour: These are needed to make the business' product using the raw materials and goods provided. They have different abilities and levels of effort

Business failure: This might happen because there might not be a demand for the products this means the business won't generate any sales and cannot pay there rent and fail 

Lack of security: If an entrepreneur has a regular job, and they decide to leave that job to open their own business this is a huge risk; They may have a mortgage, a car and other bills to pay also there may be insecurity of sales with falling consumer incomes

Financial loss: losing the intial amount invested,Starting a business can be a financial risk for the owner or the owner may put their own cash andother assets (e.g. a van) into a business

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