1.1 Introduction To Business Management Flashcards
Business Plan
Refers to the document that sets out the business idea, its goals and objectives and other details of how the business will operate.
Business
Organisations involved in the production of goods and or the provision of services
Consumers
The people or organisations who actually USE the product
Customers
The people or organisations that BUY the product
Entrepreneurs
Owners or operators of an organisation who manage, organise and plan the other three factors of production. They are risk takers who exploit business opportunities ities in return for profit.
Entrepreneurship
The act of behaving as an entrepreneur but as an employee within a large business organisation. Intraprenuers work in an entrepreneurial capacity, with authority to create innovative products or new processes for the organisation.
Needs
Basic necessities that a person must have to survive
Primary sector
Businesses involved in the cultivation or extraction of natural resources
Product
Refer to both goods and services. Goods are physical products and services are intangible products
Quaternary sector
Subcategory of tertiary sector. Businesses involved in intellectual, knowledge-based activities that generate and share information.
Secondary sector
Section of the economy where business activity is concerned with the construction and manufacturing of products
Sectoral change
Shift in the relative share of gross domestic product (national output) and employment that is attributed to each business sector
Tertiary sector
Sector of the economy where business activity is concerned with the provision of services to customers
Wants
People’s desires, the things they would like to have
