1.1 What is a Business? Flashcards
Which are the roles of a Business?
- Meet needs and wants from individuals and organizations 2. create products, provide services,
What is a Tangible product?
product that can be seen or taken home (ex. iPhone, vegetables)
What is an Intangible product?
product that can’t be taken physically (ex. yoga class)
What are the Inputs of resources needed in production?
human, physical, financial, enterprise. these inputs are transformed to production
what are the outputs of production?
products and or services
why is human an input?
all businesses need human input. some might need 1 individual or various with different skills
why is financial an intput
all businesses need finance/capital to make a product or service. this finance could be given by loans, savings or overdraft. need finance to work
why is physical an input?
physical materials, machinery, and space is required to make a product or service. even online businesses need a computer machinery
why is enterprise an input?
the business idea and will to see all the other areas become functioning.
what are the 4 sectors ?
primary, secondary, tertiary, quaternary
What involves the primary sector?
acquiring raw materials. (metals, and coal have to be mined, oil drilled from the ground, fruits farmed and animal)
what involves the secondary sector?
manufactures and assembles products. transform raw materials into finished goods. (ex. cookies, cars, phones
what involves the tertiary sector?
provides services to customers, which sometimes includes tangible goods. Examples include banks, education, transportation, insurance,
what involves the quaternary sector ?
provides services focused on knowledge. Includes IT research and development, consultancy
which sectors provide goods?
primary and secondary
which sectors provide services?
tertiary and quaternary
what are some examples of primary sectors?
oil drilling, fishing, coal mining, hunting, crop picking
what are some examples of secondary sector?
baker, car manufacturer, builder, dress maker
what are some examples of the tertiary sector?
taxi company. Starbucks, McDonalds, FedEx, Apple, Government Bodies
what are some examples of the quaternary sector?
medical scientist, magazine company
What is an entrepreneur?
individual who develops and runs a business assuming all the risks and rewards of the company
what are some characteristics of an entrepreneur?
sees opportunities, has skills and initiative to take good ideas to market, makes right decisions that lead to profitability
what are the opportunities to start a business?
rewards, necessity, sharing an idea, finding a gap, interest, challenge, independence
what are the challenges of starting a business?
lack of experience, difficulty raising finance, inability to raise brand awareness, poor location chosen, lack of costumer interest, difficulty finding supplies. difficulty registering the business following the law, etc.
what are the reasons why businesses fail?
not investigating the market, expanding too fast, business plan problems, little financing, rigidity (don’t adapt to change), bad location, internet pressure and marketing
what is a business plan?
written document that describes a business, its objectives and strategies
why are business plans useful?
requires a business owner to plan their marketing, financial, and Human Resources of the business. Helps focus the entrepreneur, Coordinates activities within the business, Sets goals for the business easier to achieve when written
In what are business plans helpful?
focuses the entrepreneur , coordinates activities within the business, sets goals for the business that are easier to achieve when written down
what are the limitations of a business plan?
long time to make, rarely updated or used after, only as good as the research and forecasts that went into making it, external factors can affect accuracy
what are some of the elements of a business plan?
information of owner(s) background & experience, overview of business and its products and ideas, market analysis, goals for the short and medium and long term, financial information
