An orginisation that exists to produce goods or supply services to customer
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What are goods?
Goods are actual objects. They can be touched, felt and held. They are produced and consumed
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What are services?
Services ar activities. They are intangible. They are provided by other business people
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What is an entrepreneur?
An individual who sets up and runs a business and takes on th risks associated with the business
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What is adding value?
The difference between the price of the finished product/service and cost of the inputs involved in making it
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Name 3 ways in which a business adds value?
1) Offer a unique selling point 2) Produce a well designed product 3) Build a strong brand
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What is customer needs?
Essential goods and services necessary for survival
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what is customer wants?
Something that a person or another business feels desire. A business aims to provide goods and services to fulfil these wants
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what is Transformation process?
The process of turning the Factor of Production (Finance, Labour, Physical and Enterprise) into a good or service by adding value
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What is the Market orientation?
Occurs when a business designs and makes a product which takes into account the needs and wants of consumers
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What is Product orientation?
occurs when a business focuses on the product rather than what customers want. It designs and makes a product hoping that it will then attract customers
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What is Risks?
These are the negative situations that may arise as a result of starting a business and they include business failure, financial loss and lack of security
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What is Calculated risk?
Taking a chance or making a decision having considered both the potential advantages and disadvantages of the decision
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What is Rewards?
These are the returns a business owner can expect from a business and the include: business success, profit and independance
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What is Profit?
The amount a business receives from the sale of a good/s after deducting all costs
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What is Financial security?
Ocuurs when a business owner has a sufficient assets (or sources of finance) to pay their loans and can confidently survive without the risk of running out of money
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Other cards in this set
Card 2
Front
What are goods?
Back
Goods are actual objects. They can be touched, felt and held. They are produced and consumed
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