Chapter 1.1 - What is a business? Flashcards
Adding value
Producing a good/service that is worth more than the cost of resources used to produce it
Businesses
Organizations involved in the production of goods and/or the provision of services
Consumers
The people or organizations that actually use a product
Customers
The people or organizations that buy the product
Entrepreneurs
People who manage, organize, and plan the resources needed for business activity in pursuit of organizational objectives. Risk takers who exploit business opportunities in return for profits
Goods
Physical products produced and sold to customers
(laptops, books, toys, etc)
Needs
The basic necessities that a person must have to survive
(food, water, warmth, shelter, clothing, etc)
Primary sector
Businesses involved in the cultivation or extraction of natural resources
(farming, mining, quarrying, fishing, oil exploration, forestry)
Production
Process of creating goods and/or services, adding value in the process
Quaternary sector
A sub-category of the tertiary sector, where businesses are involved in intellectual and knowledge-based activities that generate and share information
(research organizations)
Secondary sector
Businesses concerned with the construction and manufacturing of products
Services
Intangible products sold to customers
(Services provided by airlines, restaurants, cinemas, banks, beauty spas, schools, hospitals)
Tertiary sector
Businesses involved with the provision of services to customers
Wants
People’s desires, the things they would like to have
(new clothes, smartphones, holidays, luxury items)
