Business Unit 1 key terms flashcards.

Question	Answer
What is a product ?	A product is a good or a service
What is a business plan?	A business plan is a document that is used as a map to guide you through the future of the business. It can also be used to show investors
What are the factors of production ?	These are what used to develop the business. They are Land, Labour, Enterprise and Capital
What is a sole trader ?	A business owned by one person.
What is a partnership ?	A business owned by 2- 20 people.
What does interdependence mean ?	All of the sectors rely on each other. Image: HAgrid (image/png)
What are 2 advantages and disadvantages of a sole trader ?	Advantages -You are your own boss -You go with your ideas -All profit is yours Disadvantages - No one to bounce ideas off -No additional income -If business fails its all on you.
What are the sectors of economy ?	Primary - Raw materials (Gold, Wood) Secondary-Manufacturing (Table Maker) Tertiary- Selling (Shop, Ikea)
What is limited liability ?	Limited liability is where if the business fails business money and personal money are different.
What is unlimited liability ?	Unlimited liability means that if the business fails business money and personal money are the same.
What are 2 small business structures ?	Sole trader Partnership

Resource summary

	Created by kinghanratty over 9 years ago