1.1 what is a business Flashcards
what is a Good?
Tangible product that can be seen or taken home – iPhone, vegetables
what is a Service?
Intangible product that the consumer does not physically take home– yoga class, medical
what is a business and what does it do?
Creates a product
Provides a service
Extracts raw materials from the earth
what is the role of a business?
The role of a business is to meet the needs and wants of individuals or organisations
what are some resources needed in production?
inputs and outputs
what are the input resources needed in production?
Human, physical, financial, enterprise
what are the outputs in production?
goods and services
what are some inputs (factors in production)?
raw materials, capital, Human Resources, natural resources
what is human in resources needed in production?
businesses, even highly automated ones needed human input. Some might only need 1, others require many individuals with different skill sets
Eg – car manufacturing/Restaurant
what is financial in resources needed in production?
businesses need finance/capital to make a product or service. Whether it is a loan, savings, overdraft, all businesses need finance to function
what is physical in resources needed in production?
quantity and quality of physical materials. machinery and space is required to make a product or service. Even an online business needs a computer (machinery)
what is enterprise in resources needed in production?
This is the business idea and the will to see all the other areas become a functioning and thriving business.
what are the 4 sectors of business activity?
primary, secondary, tertiary, quaternary
which 2 of the 4 sectors provide goods?
primary and secondary
which 2 of the 4 sectors provide services?
tertiary and quaternary
what involves the primary sector?
Involves acquiring raw materials. For example, metals and coal have to be mined, oil drilled from the ground, fruits farmed and animals raised.
what involves the secondary sector?
manufactures and assembles products. transform raw materials into finished goods. For example, cookies, cars, cell phones, etc (made into a wproduct)
what involves the tertiary sector?
provides services to customers, which sometimes includes tangible goods. Examples include banks, education, transportation, insurance, etc
what involves the quaternary sector?
provides services that are focused on knowledge. This includes IT, research and development, consultancy, the media, etc
what is an entrepreneur?
An individual who develops and runs a business, assuming all the risks and rewards of that given business.
what are the characteristics of an entrepreneur?
Able to see opportunities where others are not.
Someone who has the skills and initiative necessary to take good new ideas to market
Can make the right decisions that lead to profitability.
what are the 7 opportunities to start a business?
rewards, necessity, sharing an idea, finding a gap, interest, challenge, independence
what is rewards in opportunities to start a business?
Getting to keep all the profit. Also the possibility of risk however
what is necessity in opportunities to start a business?
The need for a salary may lead to some starting a new business
