(SL) Unit 1: Business Organization and Environment; Topic 1.1 Introduction to business management Flashcards
Flashcard Main Resource: https://guide.fariaedu.com/business-management-hl/unit-1-business-organisation-and-environment/1.1-introduction-to-business-management
What is a Business?
A business is any organisation that uses resources to meet the needs of customers by providing a product or service that they demand. Not-for-profit organisations are classified as businesses.
What do Businesses do?
Businesses identify the needs of consumers or other firms. They then purchase resources, which are the inputs of
the business or factors of production, in order to produce output. The ‘outputs’ of a business are the goods and
services that satisfy consumers’ needs, usually with the aim of making a profit.
What is an Entrepreneur?
An entrepreneur is someone who takes the financial risk (and reaps the rewards!) of starting and managing a
new venture.
Entrepreneurs are people who?
- Had an idea for a new business
- Invested some of their own savings and capital
- Accepted the responsibility of managing the business
- Accepted the possible risks of failure
What are the Qualities of Entrepreneurship?
- Innovation
- Commitment and self-motivation
- Multi-skilled
- Leadership skills
- Belief in oneself
- Risk taker
What are some reasons to start a Business?
- Losing a job may provide the needed push
- Desire for independence
- Financial security
- Identification of a market opportunity
- Social connections may encourage and facilitate the move
- Having a risk-taking or challenge-seeking personality
What are some problems faced when starting a Business?
- Competition
- Building a customer base
- Lack of record keeping
- Lack of working capital
- Poor management skills
- Changes in the business environment
What is a Business Plan?
A business plan is a written document that describes a business, its objectives and its strategies, and the market it
is in and its financial forecasts
What are the 4 main Business Functions in a Business?
- Marketing
- Human Resources
- Finance
- Production
What are the 4 sectors of Industries in Business?
- Primary
- Secondary
- Tertiary
- Quaternary
