Introduction to Business Management Flashcards
What is business?
It exists to satisfy the needs and wants of their customers by selling goods and services, usually in return of profit.
What are the factors of production?
Land, labour, capital, entrepreneurship
What is land?
Natural resources needed to produce goods and services. (water, wood, etc)
What is labour?
Human effort used to produce goods and services
What is Capital?
Man-made resources used in the production process. (Ex. tools, machinery)
What are the 4 departments of business?
Human resources, Finance and Accounts, Marketing and Operation Management
What does Human Resources do?
Find, screen and recruit workers
What does Finance and Accounting do?
The manage the business’ overall finance
What does Marketing do?
They price the business’ products and decide where to sell them, as well as promoting them
What does Operation Management do?
They control the process of production, they make sure that everything runs smoothly
What is Adding Value?
When a particular good or product that is worth more than the resources used to produce it.
What is a customer?
The people that purchase goods and services
What is a consumer?
The people who use good and services
What is the difference between a consumer and a customer?
The consumer has a need for the good/service, the advertising is targeted towards them. A consumer can become a customer
What is the primary sector of the industry?
Business activity involved with the extraction of natural resources
