Chapter 1: role of business Flashcards
define a finished product
a finished product is one that is ready for consumers to buy and use
define production
production refers to the activities undertaken by a business that combine resources to create products to satisfy customer’s wants and needs
what are the functions of a business
profit, employment, choice, innovation, income, entrepreneurship and risk, wealth and quality of life
outline profit as a function of a business
the return and reward that business owners receive for producing products that consumers want/need
revenue - operating costs
outline employment as a business function
businesses provide jobs for the local community
provide employees with income
outline income as a function of a business
money received for providing labour to a business
can come in the form of salaries, wages or dividends
outline choice as a function of a business
consumers gain the freedom of choice and the opportunity to purchase products at competitive prices
selecting amongst alternatives
outline innovation as a function of a business
creating a new product, service or process, or significantly improving an existing one through R&D
outline entrepreneurship and risk as a function of a business
the ability and willingness to start, operate and assume the risk of a business venture in hopes of earning profit
outline wealth as a function of a business
business activity results in higher levels of eco growth and wealth
outline quality of life as a function of a business
overall wellbeing of an individual and is a combination of both material and non-material benefits
