3.1 What Is Business? Flashcards
What is a business
An organisation that exists to provide goods or services on a commercial basis to customers
What is a start up
A new business enterprise formed by one or more entrepreneurs
What is an entrepreneur
A person who sets up a business or businesses, taking on financial risks in the hope of profit
What is a good
Physical products
What is a service
Intangible product
What are the benefit of business to society
Create employment
Drive innovation
Tax
Create wealth by providing returns on investment
What is the role of the entrepreneur
Spots business opportunities
Takes risks in order to gain possible future returns
Acts as a catalyst for the creation and growth of new businesses
What is the operations process
Inputs- transformation process- outputs
What are the key inputs into the process
Land-area to work
Capital- money they need to sustain
Labour- employees
Enterprise - opportunity to make business
What are business objectives
Goals that businesses can use to get where they want to be
What are the main functions of objectives
-To allow them to have targets and something to work towards
What are the 5 parts of the hierarchy of objectives
1- mission
2– corporate/ strategic
3- functional
4- team
5-individual
How can objectives be used
Motivate employees
Reduce uncertainty
Provide a target
What are the factors that can influence business objectives
State of the economy
Social attitudes
Market conditions
Age of business
What are strategic objectives
Focused on long term
Involve high risk
