business Flashcards
Transformation process
When imputes (the good) gets turned into output (packaging)
Job production
The method of making the product meet the exact need and requirement for the customer
What are the reasons for starting a business
- peruse your passion
- be your own boss
- To have a flexible work schedule
- create a legacy
Explain the difference between goods and services
A good is a physical product that someone will buy, (meaning something you can touch), and a service is when you pay for a skill.
Explain the difference between needs and wants
A need is something that is necessary to live and function.
A want is something that can improve your quality of life.
Explain primary, secondary and tertiary sectors and give example for each one
Primary sector – Mining, forestry, farming, and fishing.
Secondary sector – Manufacturing
tertiary sector - selling, promoting the product
What are the factors of production
land, or the physical space and natural resources, labour, or the workers
capital the money and equipment .e.g. machinery
entrepreneurship, or the ideas and drive,
Explain opportunity cost
the value of the option not taken when a business makes a decision.
Define the word enterprise
What is it meant by an entrepreneur
an individual who starts their own business based on an idea they have or a product they have created while assuming most of the risks and reaping most of the rewards of the business.
Explain 3 characters of an entrepreneurs
confident
hard working
determined
What are the objectives of entrepreneurs
to be their own boss and have the independence and freedom
Identify the 4 functional areas of a business
marketing.
human resources.
operations.
finance
Why do businesses face a constantly changing environment? (Name 4 external influences.)
globalisation
technological
ethical
environmental
economic
legal influences.
