Purpose And Nature Of Business Flashcards
Purpose of a business
To produce goods or services to customers. These can be tangible or intangible
Primary
Producing raw material which are extracted from nature
Secondary
Manufacturing goods which are made from raw materials and turned into finished goods. A lot of construction
Tertiary
Providing services. This will include business involved in the distribution process
Quaternary
Provides information service
Factors of production
Capital
Enterprise
Land
Labour
Capital
The buildings and machinery needed by the business
Enterprise
The entrepreneur who set up the business, organises, the factors of production and takes the risks involved in running the business
Land
The land where the business is based, but also including the natural resources on, or under , that land
Labour
The people waiting in the business, including the mangers
Legislation
Is rule or law. Cars have to be manufactured electric by 2030. Cost money to change it, new skills needed
Environmental
Is change in the physical environment such as a natural disaster, having to become carbon neutral, the way we get our energy
Economic
Is the flow of money in the country. This can be affected by workforce, tax, interest rate, inflation, bank loans,, and exchange rates
Social
Is the environment of your customers. Thing that can change this fashion/trends, social media, word of mouth, and target customer
Technological
Is the improvement of technology and the way people communicate. Such as the cost of technology, the availability of tech, and the way to get people to your business
