B1 Knowledge Flashcards
Business
Enterprise that use the four factors of production to provide a service or a product
4 Factors of production
Capital: includes monetary capital and manufacturer resources used in production known as Capital goods
Enterprise: initiative and coordination provided by entrepreneurs. They convine other factors of production in order to provide goods or services
Land: All renewable and non-renewable natural resources
Labour: Manual and skilked labour make up the workforce of the business
Adding Value
Creting goods ans services and swlling them for a higher price
Opportunity cost
When taking decisions we must give up one good to obtain another. The good that’s given up is the opportunity cost
Multinational business
Businesses with operations in more than 1 country
Intrapreneur
Idea makers who work for an organisation
Business plan
It includes an executive summary, a description of business opportunities, marketing and sales strategy, management team and personnel, operations and finan ial forecast
Public sector
Their organisation are owned by the goverment and provide public goods
Private sector
Thrir organisation are owned by individuals, groups or business identities
Mixed economies
Most business activity is on the private sector
Free-Market
All business activities are on the private sector
Command-economies
Most business activities are on the public sector
Organic growth (internal growth)
Occurs when a company uses it’s own resources and tools to expand. This includes increasing production, developing new products or services or other developmental strategies
External Growth
Often called integration, as it involves bringing together two or more businesses
Synergy
When the combined result is greater than the sum of individual parts
Startegic Alliencies
Its a form of external growth that does not involve complete integration or changes in ownership. Instead it keeps the parties to the agreement independent
Business objectives
Results the company is aiming to archive in order to acconplish long term vision
Business aims
A formal way of communicating your business goals and commitments to others in broad terms
Corporate social responsability
Involves joining environmental and social policies with a business economics goals and operations
Mission statements
Are an attempt to concentrate a business central purpose into one starement. Not with quantifiable goals but in a motivating way
Strategies and tactics
Breaksdown a business objectives into a short term plan from employees to work
