IGCSE Business Studies: Key Terms Ch 1.1

Front

Business Activity

Back

Production of goods/services to satisfy needs

Front

Needs

Back

Essential for survival

Front

Wants

Back

Desires, not essential

Front

Scarcity

Back

Limited resources, unlimited wants

Front

Opportunity Cost

Back

Next best alternative foregone

Front

Factors of Production

Back

Land, labor, capital, enterprise

Front

Specialization

Back

Focus on specific tasks

Front

Division of Labor

Back

Breaking down production into tasks

Front

Added Value

Back

Difference between cost and selling price

Front

Entrepreneur

Back

Person who organizes resources, takes risks