1.1 What is a business Flashcards
change
An act or process through which something becomes different.
ethics
The moral principles that govern the behaviour of a person or group.
Sustainability
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Stakeholders
Any individual or group that affects, or is affected by, an organization.
Resilience
The ability to withstand and adapt to a disruption.
System
a set of interconnected parts that work together to make a more complex whole to achieve a purpose.
Entrepreneurs
A person who organises human, physical and financial resources to start a business.
Inputs
The human, physical and financial resources needed to create a product.
Physical resources
The raw materials and semi-finished goods that a business needs to begin production.
Capital goods
The physical equipment and machines that are used to produce other goods.
Financial resources
The funds needed to set up and invest in a business and keep it running; can be short-term, medium-term and long-term.
Long term finances
Large-scale funds needed to finance expensive equipment and facilities that a business needs to operate.
Short term financing
Small-scale funds needed to pay for inputs that will soon be processed and sold by the business; used to cover short-term working capital needs.
Stock
The inventory held by a business to sell to customers.
Inventory
The raw materials used in production, as well as the goods produced that are available for sale.
Human Resources
The people needed to run the business.
Enterprise
the process of taking risks to combine the other resources to create a good or service.
Outputs
What a business produces; can be physical products, services, solutions or waste.
Goods
The products of a business that are tangible, meaning they have physical characteristics and can be measured.
Services
The products of a business that are intangible, meaning that they do not have physical characteristics; can be a service or a solution.
Feedback
Process by which the output of a system becomes an input to the same system.
Negative feedback
When the output feeds back into the inputs in a way that moves the system in the opposite direction.
Positive feedback
Occurs when the output feeds back into the inputs in a way that moves systems and processes in the same direction.
Revenue
The income that a business generates.
Economy
A system for producing and provisioning or distributing goods and services among a group of people.
Households
important care services are provided between people with strong relationships. These goods and services are produced mainly with unpaid work
State
provides fundamental goods and services that everyone can access. These goods and services are provided often at no or a low price. They are funded mainly through taxes;
Commons
provides shared goods and services produced by society, or provides resources from Nature. People use and distribute goods, services and resources through self-organised systems. There is no payment;
Markets
provides goods and services produced by businesses. Businesses produce and sell goods and services in exchange for money, for a price.
Sector
An area of the economy
Primary sector
A section of an economy that extracts materials (minerals, oil, etc.) or harvests products from the Earth.
Secondary sector
The area of economic activity that produces finished goods through manufacturing and processing
Tertiary sector
The area of economic activity that provides services.
Quaternary sector
The area of economic activity involved with knowledge and the movement of information
Supply chain
The steps involved in creating finished goods
Integrated business
A business whose activities span two or more sectors
Outsourced
When a business takes an internal function and has it performed externally by another person or business.
Doughnut economics model
A model that outlines the social foundation (human needs) and ecological ceiling (planetary boundaries) that economic activity needs to respect to find the ‘safe and just space for humanity’.
Planetary boundaries/ ecological ceiling
The limits of planetary systems; the outer ring of the Doughnut Economics model.
Intrapreneur
A person who develops new ideas, processes or products for a business in which they already work.
Narrative bias
A mental shortcut that people can use to create stories that make sense of the world; people are often attracted to narratives.
Secondary research
Research that involves using evidence (about a market) gathered by others.
Primary research
Research (in a market) that involves creating new information that is gathered through surveys, interviews, observations, focus groups, camera studies or other methods
Value
All the benefits that a business creates for the stakeholders involved.
Market orientation
A situation where the sole focus of a business is on the needs and wants of a market segment.
Product orientation
A situation where a business prioritises research and development of high quality, specialised products, rather than prioritising market research.
SWOT
business management tool that analyses the internal strengths and weaknesses as well as the external opportunities and threats for a business.
