Study resource
The purpose and nature of businesses key terms
Study The purpose and nature of businesses with curriculum-aligned Key Terms resources, practice links, and exam-focused support.
At a glance
key terms
Resource type
Topic
The purpose and nature of businesses
Key terms
Goods
Physical items produced by a business that can be sold to customers.
Need
A requirement essential for survival or well‑being, such as food, shelter or basic healthcare.
Opportunity cost
The monetary value of the next best alternative that is forgone when a decision is made.
Labour
Human effort, both physical and mental, used in the production of goods and services.
Secondary sector
The part of the economy that processes raw materials from the primary sector into finished goods, such as manufacturing, construction and processing.
Sector
A broad classification of businesses based on the nature of their economic activity, such as primary, secondary, or tertiary.
entrepreneur
A person who creates, manages, and assumes the risks of a new business venture.
Risk
Risk is the probability of an adverse outcome that can affect a business’s financial position, reputation or operations.
entrepreneur
A person who initiates a new business, assumes financial risk, and seeks to create value through innovation and opportunity.
Dynamic environment
An environment in which external conditions such as technology, market demand, and regulation are continually evolving, influencing business strategy and operations.
Legislation
A set of rules and laws enacted by a government that businesses must follow, covering areas such as employment, health and safety, and environmental protection.
Related topics