1.1 Flashcards
What is the definition of the nature of a business?
Businesses exist to satisfy the needs and wants of their customers by selling goods and services, usually in return for profit.
what are the components that buinsesness use to create a good or service?
Human, physical and financial.
what do services or goods fill for a customer?
needs and wants.
what are some examples of needs ?
food water cloths and shelter
what are some examples of wants?
cars electronics holiday and fashion clothing
what is the defenition of a good and can you give an an example?
a tangible product eat book or iPhone
what is a service and give an example?
a non tangible product e.g cleaner or baby sitter.
what is a capital intensive production.
a product produced with a lot of land and machinery e.g soft drinks.
what is a labour intensive production?
large proportion of employees relative to land and machinery e.g shirt production.
define the resource input HUMAN.
the right quality and quantity of people required to make the product or provided service. All businesses even highly automated ones still require human input- even if its only one person. Other may require many individuals often with diverse skill sets.
Define the resource input PHYSICAL.
the right quality and quantity of materials, machinery and land space required to make a product or a service. Even internet businesses require a office or computer.
Define the resource input FINANCIAL.
the right quantity of cash and other forms of finance required to make a product or a service.
define the reasons input ENTERPRISE
enterprise, sometimes called entrepreneurship, it the business idea itselfs and the idea development.
All businesses have 4 main functions. Can you list all four?
Human resources
marketing
finance and accounts
operations management or production.
one of the four business functions is Human reasorces. Can you give me a definition?
human resources hire the appropriate people for the job, offer training, determination the proper compensation, dismiss when nessesery.
one of the business functions is marketing, give a definition of what marketings role is within a business. (pppd)
use strategies to promote, pack, price and distribute goods or services.
one of the four businesses functions is finance and accounts, could you define their role.
sure that there are enough funds to make the goods or services available.
one of the four functions of a business is operation management and production, can you define their role?
sure that the appropriate processes are being used to make the good for service available.
the four functions of a business are INTERDEPENDENT. What does this mean?
the functions being interdependent means that the design of one function will effect the others. If all four functions are successfully aligned, a business has a higher chance of success.
what economic sector are goods from?
primary and secondary.
what economic sectors are services from?
tertiary and quaternary.
what is the primary sector and give examples of what is produced?
the primary sector involves acquiring raw materials such as coal, metals, oil, rubber and oranges.
what is the secondary sector and give a few examples?
it is the manufacturing and assembly process. e.g plastics from oils. Furniture or building roads.
what does the tertiary sector offer and can you give an example?
commercial services that support the production and distribution process e.g insurance transport advertising.
