1.1 What is a Business? Flashcards
Define the term business
A term to describe a commercial or industrial enterprise as well as the people who constitute it.
Goods
Tangible items provided by businesses and sold to consumers.
Services
Tasks performed by people in the benefit of the consumer.
Need
The fundamental and necessary aspects
Want
Individual preferences and desires.
Costs
The monetary value put on something
Revenues
The net income generated by a business, prior to expenses being applied.
Value added
The decisions made for a good or service to add value before being marketed or provided to a consumer.
Production process
> Inputs: Raw materials, components, machinery, equipment
Processes: Turning inputs into manufactured goods/provision of services
Outputs: Output of provision into FINAL goods or services
Key business functions
> Operations: Overarching daily functions of a business and the logistics
Marketing: Serves as the impression and face of a company
> Coming up with product, promoting, selling, distributing (strategically)
HR: Managing recruitment, worker selections, performance, learning, relations
Financial Activities: Planning, managing, obtaining company funds
Interdependence
The way functions, concepts and factors relate and depend on each other to operate effectively
Customer/Consumer
The audience that businesses are satisfying/benefiting
> Business source of income and monetary value
> At best interests of companies
Consumer Good
Products used by consumer
Capital good
Used by business to then create a consumer good/product
Economic Sectors
Primary, Secondary, Tertiary, Quaternary
