business studies unit1 gcse
Enterprise- this is the process by which new businesses are formed and new products are created and brought into the market, these businesses are led by an entrepreneur.
Entrepreneur- An individual who has an idea in which they develop into a business. They take risks that can lead to profit OR loss.
Calculated Risks- Risky decisions based on a careful comparison of the risks set against the rewards expected from a decision.
Franchisor- is the original owner of the business.
Franchisee- is the individual or group of individuals who are willing to buy the right to sell the product or services that the franchise sells.
Franchise- exists when a small business has the opportunity to buy the right to use the name and reputation of a large branded corporation.
Demand – the amount of product that will be bought at a specified price at a given time.
Opportunity cost- a want that is not satisfied when limited recourses force a choice to be made.
Profit- the difference between the prices a trader pays for goods and the price in which they are sold.
Chain of product- where production depends heavily on capital equipment and much less on other factors of production.
Business- an organisation formed to supply goods or services, at the right time and in the right quantities to satisfy its customers’ needs.
Consumer- the final buyer or a product or service.
Customer – a person who buys goods and services from a supplier.