1.1 what is business? Flashcards
1.1 What is business?
Adding value
:the practice of producing a G or S that is worth more than the cost of the resources used in the production process.
Businesses
:organisations involve ing the production of Gs and/or provision of Ss
Consumers
consumers are the people or organisation that buys the product
Entrepeneur (s)
An entrepreneur is an individual who plans, organises, and manage a business, taking finacial risk in doing so.
Entrepreneurship
:entreprenurship is the management, organization and planning of the other three factors of production. the success or failure of a business rests on the talents and decisions of the entrepreneur.
Goods
:Goods are physical products produced and sold to customers, such as laptop, books , contact lens, perfume and children’s toy.
Needs
:Needs are the basic necessities that a person must have to surviv, including food, water , warmth, shelter and clothing.
Primary sector
:Primary sector refers to businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oill exploration and forestry.
Production
:production is the process of creating goods and/ or services adding value in the process.
Quaternary sector
Quaternary sector is a sub- category of the tertiary sector, where business are included in intellectual and knowledge based activities that generate and share information, such as research organizations
Secondary Sector
Secondary sector refers to business concerned with the construction and manufacturing of products.
Services
services are intangible products sold to the customers, such as the services provided bby airlines, restaurants, cinemas, banks, health, and beauty spas, schools and hospitals.
Tertiary sector
:Tertiary sector refers to businesses involved with the provision of services to customers
Wants
A want is something that is not required to survive
What is a business?
A organization that provides goods or service in exchange of money.
How do goods & services differ from each other?
A good is a tangible item while service is a non tangible item
How do customers & consumers differ from each other?
Customers are poeple who purchase the good or the service while the consumer is just the pople who uses it.
What are the four functional business sectors of the economy?
primary, secondary, teriatry and quaterary.
How does a business add value to its goods & service?
A business can add value to its good or services just by selling it higher than the cost price.
What is meant by the chain of production?
Chain of productions is the steps which is needed to turn the raw materials into the final product to be used by the consumers.
What are the main challenges for business start ups?
The startup cost, stable funding sources and competitions in the market.
what are the main opportunities for business start-up?
Franchising, competitive opportunities.
