Business And Factors Of Production Flashcards
Business
A business is any activity that provides goods and services in an effort to earn profit.
Not-for-profit organizations focuses on causes not profit
Profit
Profit is the financial reward
that comes from starting and
running a business.
the money that a business earns in sales (or revenue), minus expenses
Industry
The manufacturing or technically productive enterprises in a particular field, country or region
Range of companies and organizations in the same field
Top 5 Canada Industry
Agriculture
Energy
Technology
Services
Manufacturing
Functional areas of a business
Marketing
Human Resources
Operations/production
Accounting/finance
Explain functional area: marketing
Designing, delivering, and promoting goods and Marketing
services for a target market Managing long-term customer relationships
The 4 P’s: Product, Place, Price and Promotion
Explain functional area : HR
Recruiting talent, promoting career development, and Human Resources
boosting organizational effectiveness Recruiting, selecting, training, evaluation, compensation, separation
Explain functional area : operations/production
Choosing effective and efficient methods to produce Operations/ and distribute products
Production
Supply chain management
Quality control
Explain functional area : accounting/finance
Recording, analyzing and communicating financial information
Acquiring and using funds to maximize company value
What are factors of production
Necessary ressources for business
Name factors of production
Natural resources
Capital (financial)
Labour
Entrepreneurship
*money in itself is not one because it is not a productive resource
Explain factor of production : natural resources
Land and non-renewable resources that come from the land (water, wind, minerals, fish)
Explain factor of production : capital (financial)
Man-made resources (machines, tools, buildings, technology)
Explain factor of production : labour
Physical, intellectual and creative contributions of people (human resources)
Explain factor of production : entrepreneurship
Financial risk-takers who capture business opportunities
