Business activity uses the scarce resources of our planet to produce goods and services to fulfil the wants and needs of customers

An economy's finite resources are insufficient to satisfy all human wants and needs.

The benefit of the next most desired option which is given up and the loss of the next most desired option given up.

Businesses selling a product for higher a price than the cost of producing the product.

Characteristics: Innovation, commitment and self-motivation, multi-skilled, leadership skills, self-confidence, risk taker

Finance needed to set up the business and grow, and capital goods

Lack of record keeping, lack of cash and working capital, poor management skills, changes in business environment