1.1 - What is a business? Flashcards
practice of producing a good or service that is worth more than the cost of the resources used in the production process
Adding value
the document that sets out the business idea, the goals & objectives and how it well operate
business plan
organizations involved in the production of goods and/or the provision of services
businesses
people/organization that use a product
consumers
people/organization that buy the product
customers
owners/operates of an organization who manage, organize and plans the other three factors of production
entrepreneurs
collective knowledge, skills and experiences of entrepreneurs
entrepreneurship
resources needed in the production process: land, labour, capital and entrepreneurship
factors of production
physical products produced and sold to customers
goods
behaving like an entrepreneur but as an employee in a business organization
intrapreneurship
basic necessities that a person must have to survive
needs
cultivation or extraction of natural resources: farming, mining, quarrying
primary sector
goods and services
products
process of creating goods/services
production
subcategory of tertiary sector, where businesses are involved in intellectual, knowledge-based activities that generate/share information
quaternary sector
business activity concerned with construction & manufacturing of products
secondary sector
shift in relative share of GDP (national output) & employment that is attributed to each business sector
sectoral change
intangible products sold to customers
services
business activity concerned with provision of services to customers
tertiary sector
people’s desires; the things they would like to have
wants
