Role of business Flashcards
What are inputs in a business context?
Resources used to create outputs, such as raw materials, labor, finance, and equipment.
What is a business?
An organization that makes a profit by providing goods and services that satisfy the needs and wants of customers.
What is meant by ‘adding value’ in business?
Combining inputs with human skill and equipment to enhance the value of the product, for example, producing orange juice from oranges.
Define ‘driving force’ in a business context.
A force that pushes the need for change.
What are the key roles of a business abbreviated as PEE QWIIC?
Profit, Employment, Entrepreneurship & Risk, Quality of Life, Wealth, Income, Innovation, and Choice.
What does ‘Profit’ refer to in business?
Financial gain.
What role does ‘Employment’ play in a business?
Employing workers for their knowledge, skills, and human resources.
Explain ‘Entrepreneurship & Risk’.
The individual with ideas who is willing to take risks to implement these ideas through business.
How does a business improve ‘Quality of Life’?
By developing products that enhance life, such as gluten-free bread and new medicines from pharmaceutical research.
How does a business contribute to ‘Wealth’?
By increasing the value of the business.
What does ‘Income’ mean in a business setting?
Paying workers.
Define ‘Innovation’ in business.
Improving features of a product for competitive advantage, being dynamic, and acting early to avoid future issues.
What is the importance of ‘Choice’ in business?
Offering variety based on price and quality, providing similar products with different aspects.
