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
What is the secondary sector of the industry?
Business activity involved with the manufacturing or construction of finished products
What is the tertiary sector of the industry?
Business activity that involves providing services to customers
What is the quarternsry sector of the indsutry?
Business activity involving the creation or sharing of knowledge and information
What is an entrepreneur?
A person who’s willing to take calculated risks by investing in a business start-up or commercial Initiative
What is a visionary?
An entrepreneur who has the foresight and driving force behind an organization’s growth
What is a private sector of the economy?
Businesses owned and run by private individuals/organizations that usually aim to earn a profit.
What are some examples of for-profit organizations?
Sole traders, Partnerships, Privately held companies and Publicly held companies
What is the public sector of the economy?
Business owned and run by organizations controlled by a near government, aiming to provide to the general public
What are some examples of public sector?
Health care services, Education, National defence and Emergency services
