notes Flashcards
Define business
a bussiness is any activity that is conducted by an indiviudal or individuals to produce and sell goods and services that will satisfy the needs of society, with the main objective of making profit.
Why are businesses important?
Businesses are the backbone of an economy. They provide products and services that can be purchased by individuals and other companies. Businesses range in size from small to large and operate in many different industries.
define ‘profit’
a. Profit-making more money than you spend eg. Buying a soap for 10 dollars and selling it for 15
define ‘shareholder’
A shareholder is a person that owns shares or stocks in a company.
define ‘revenue’
Revenue refers to the total amount of money that a business generates from the sale of its goods or services.
define ‘primary ‘, ‘secondary’ and ‘tertiary’ industry
f. Primary industry-extracting (removing something) resources directly from nature eg. Farming, fishing, agriculture,mining
g. Secondary industry-has the raw materials and creates in into a product. Manufacturing, small goods, food, clothes, construction
h. Tertiary industry-Where you provide service. Eg. Baber, health, bank
business size meaning
Business size generally refers to how big the business is typically measured by factors such as the number of employees, revenue, assets, market share, and geographical reach. Smaller-fewer than 20 employees medium 20-199 and large above 200
business sector meaning
business sector refers businesses that share similar characteristics and operate in a similar market or environment. There are typically three main business sectors: primary, secondary, and tertiary.
distinguish revenue and assests
Revenue refers to the total amount of money that a business generates from the sale of its goods or services and assets is something a bussiness owns that has value.
market share
the amount of sales you make in a particular industry
