Added Value: The difference between the selling price of a product and the cost of the inputs used to produce it.
Business Aims: The overall long-term goals a business wants to achieve.
Business Enterprise: The activity of starting and running a business in order to produce goods or services and make a profit.
Business Objectives: Specific, measurable targets that help a business achieve its aims.
Business Success: When a business achieves its aims, generates profit, and operates effectively in the market.
Calculated Risk: A risk that has been carefully assessed by weighing up the potential benefits and possible losses before making a decision.
Capital: Equipment, machinery, and finance used in the production of goods and services.
Competitive Advantage: A factor that allows a business to perform better than its competitors.
Consumer Preferences: What customers want, value, and expect from products and services.
Customer Needs: Essential products or services that customers require, such as food, clothing, and shelter.
Customer Wants: Non-essential products or services that customers desire but do not need for survival.
Dynamic Environment: A business environment that is constantly changing and requires businesses to adapt.
Enterprise: The skill of organising land, labour, and capital to produce goods or services and take risks in order to make a profit.
Entrepreneur: An individual who organises resources, makes business decisions, and takes risks to start and run a business.
Entrepreneurship: The process of starting and running a business, involving risk-taking and decision-making.
Factors of Production: The resources needed to produce goods and services, including land, labour, capital, and enterprise.
Financial Loss: When a business’s costs are greater than its revenue, resulting in a loss of money.
Goods: Physical, tangible products that can be touched and stored.
Independence: The freedom to make your own business decisions and be your own boss.
Innovation: The process of creating new ideas, products, or methods.
Labour: The workforce involved in producing goods and services.
Land: Natural resources used in the production of goods and services.
Lack of Security: The risk of unstable income and uncertainty that comes with running a business instead of being employed.
Market Economy: An economic system where decisions about production and consumption are made by businesses and consumers through supply and demand.
Obsolescence: When a product or service no longer meets customer needs or expectations due to changes in technology, competition, or lifestyles.
Opportunity: A gap in the market or a new idea that a business can use to meet customer needs and make a profit.
Original Idea: A completely new business idea created by an entrepreneur to solve a problem or meet an unmet need.
Profit: The financial gain made when total revenue is greater than total costs.
Resources: The inputs used by businesses to produce goods and services, including land, labour, capital, and enterprise.
Reward: The benefits gained from taking risks in business, such as profit, success, or independence.
Risk: The chance that a decision could lead to loss, failure, or negative consequences.
Services: Intangible products that provide a skill, experience, or benefit rather than a physical item.

Module Review

Summary

Revision

Glossary

1.1.1 The Dynamic Nature of Business

1.1.2 Risk and Reward

1.1.3 The Role of Business Enterprise