1.1 What is a business Flashcards
What is a business aims?
A business’ aims is to meet the needs and wants of individuals or organisations
How can businesses achieve their aims?
A business can achieve their aims by: -Producing or extracting raw materials
-Creating a product
-Providing a service
What type of resources must all businesses have?
-Human
-Physical
-Financial
-Enterprise
What does human resource inputs refer to?
Human resource inputs refers to having the right quality & quantity of people required to make a product or provide a service
What do physical resource inputs refer to?
Physical resource inputs refers to the right quality and quantity of materials, machinery, land, space required to make a product or provide a service
What do financial resource inputs refer to?
Financial resource inputs refers to having the right quantity of cash and other forms of finance required to make a product or provide a service
What do enterprise resource inputs refer to?
Enterprise resource inputs refers to the business idea & determination to turn that idea into a thriving business
What are capital intensive processes?
Capital intensive processes are processes that use large proportion of land or machinery relative to other inputs
What are labour intensive processes?
Labour intensive processes are processes that use a large proportion of labour relative to other inputs. This may involve both low-skilled or high-skilled workers
What are the two product outputs?
-Goods
-Services
What is a good?
Goods are tangible products that customers can physically take home
What is a service?
Services are intangible products that customers can not physically take home
What are the 4 business functions?
-Human Resources
-Finance and accounts
-Marketing
-Operations management
What is the role of HR?
The role of HR is to fire, hire, train and reward employees
What is the role of finance & accounts
Finance & accounts ensures that appropriate funds are made available in order to make the good or provide the service
What is the role of marketing?
Marketing ensures that the business offers a product or service that is desired by a sufficient number of people or businesses for profitable operations
What is the role of operations?
Operations ensures that the right processes are used in order to make the good or provide the service that is of desired quality
What are the 4 sectors of business activity?
-Primary
-Secondary
-Tertiary
-Quaternary
Which sectors of business activity are for goods and which ones are for services?
-Primary & secondary sectors are for goods
-Tertiary & quaternary are for services
Define the term primary sector?
Primary sector is were all the raw materials are acquired. An example of this is farming
Define the term secondary sector?
The secondary sector includes construction and manufacturing. It uses resources from the primary sector to manufacture finished goods or process raw materials.
Define the term tertiary sector?
Tertiary sector is were all services are provided. These services can be financial, healthcare, education.
Define the term quaternary sector?
Quaternary sector are services that are focused on knowledge are provided. These services can be IT and media
What is the chain of production?
The chain of production is the series of steps through different sectors in order to turn raw materials into a product that can be marketed
What is an entrepreneur?
An entrepreneur is an individual who starts a business
State 3 features of an entrepreneur
-Risk-takers
-Innovative
-Self motivated
What are reasons for starting up a business?
FRNCIIS
-Finance
-Reward
-Necessity
-Challenge
-Independence
-Interest
-Sharing an idea
What are some challenges a new business may face?
TOMBFL
-The market
-Organisation
-Market research
-Business plan
-Finance
-Legal requirements
