Business activitives and the economy Flashcards
Explain the objectives of business.
- To provide OWNER with profit and personal satisfaction
- To provide EMPLOYEE with an income
- To provide SOCIETY with economic goods and services that satisfy the needs and wants of our people.
Define the term “Business”
- use of resources and activities
- produces goods and services
- essential to our daily lives
- satisfy needs
What are the four factors of production?
- Land
- Labour
- Capital
- Entrepreneurship
Define and explain why is land a factor of production.
Refers to all natural resources/tangible input used in production process.
Includes land for agricultural uses & extraction of mineral deposits
Materials include raw materials, tools, components and semi-finished goods.
Define and explain why is labour a factor of production.
Refers to the physical and mental input of the people who work for the business to produce goods and services.
Actual production, distribution and professional services.
Define and explain why is capital a factor of production.
Refers to the funds necessary to finance the operation of a business.
Includes funds from owners or shareholders, bank loans and retained profits.
Define and explain why is entrepreneurship a factor of production.
Refers to risk-taking by the owner to operate the business.
Organizes the three factor* in return for profits but it may also result in a loss.
*Land/Materials, Labour & Capital.
Explain briefly the relationship between business and it’s workers/employees.
Workers’ future careers and incomes depend on the business financial success.
Require training to perform effectively and be aware of safety at their workplace.
Observe industrial health & safety laws.
Explain briefly the relationship between business and the worker unions.
Cooperate with unions to..
Increase receptiveness to change, productivity, morale, innovation, job security, product quality and corporate reputation.
Reduce conflict, turnover and absenteeism.
Explain briefly the relationship between business and it’s suppliers.
Suppliers must be sure about the business’s ability to buy and pay for their materials, goods and/or services.
Explain briefly the relationship between business and it’s customers.
They must be sure that the business is able to supply them with goods and services that meet their needs.
Business has to use innovation and creativity to enhance their goods and services to meet the changing needs of customers.
Explain briefly the relationship between business and the government/economy.
Business produces good and services using the four factors of production*.
Contribute to nation’s economic growth.
A business co-exists and is interrelated with other businesses.
*Land/Materials, Labour, Capital and Entrepreneurship.
Explain briefly the relationship between business and the welfare organizations.
Channels for businesses to demonstrate their social responsibility through financial contributions, volunteerism and provision of professional services.
