1.1 what is a business? Flashcards
What is a business?
A business is an organization that provides goods or services to customers for profit.
What is the transformation process in a business?
The transformation process involves converting inputs into outputs.
What occurs during the transformation process that adds value?
Adding value occurs when outputs are produced that are worth more than the inputs.
How can a business add value to a product or service?
A business can add value through:
* Branding
* Quality improvements
* Customer service enhancements
* Unique features
What is a brand?
A brand is a name, design, logo, symbol, or anything that makes a product recognizable and distinguishes it from competitors.
What is a Unique Selling Proposition (USP)?
A USP is a feature of a product that makes it different from competitors for the customer.
What are the Four Sectors of the Economy?
The Four Sectors of the Economy are:
* Primary
* Secondary
* Tertiary
* Quaternary
What is opportunity cost?
Opportunity cost measures the sacrifice made by choosing one option over the next best alternative.
What are market forces?
Market forces are the forces of supply and demand that determine the price and quantity of products in a market.
What does STEEPLE analysis examine?
STEEPLE analysis examines:
* Social
* Technological
* Economic
* Environmental
* Political
* Legal
* Ethical factors
How can technological change affect the profits of a business?
Technological change can affect profits by:
* Reducing costs through automation
* Creating new markets or products
True or False: The STEEPLE environment is within the control of a business.
False
Fill in the blank: __________ is an analysis method used to assess the external macro environment of a business.
STEEPLE
What challenges might a new business face?
Challenges for a new business may include:
* Limited funding
* Market competition
* Regulatory hurdles
How can changes in the STEEPLE environment create business opportunities?
Changes can create opportunities by:
* Introducing new markets
* Shifting consumer preferences
* Enabling innovation
Explain one situation in which ethics might affect a business decision.
Ethical considerations can affect decisions such as:
* Sourcing materials responsibly
* Fair labor practices
What is the purpose of a business?
The purpose of a business is to provide goods or services that fulfill customer needs while generating profit.
