Topic 1.1: Introduction to Business and Management Flashcards
Adding value
Producing service that is worth more than the cost of the resources in the production process
Asset
Anything of value owned by business (also individuals)
Automation
Shifts from secondary to tertiary sectors
Business
Organisation involved in the production of goods and/or the provision of services
Business activity
The process of turning inputs into output to meet needs and wants of customers
Business plan
Document that sets out the business idea
Capital
Finance/Non-natural (manufactured) resources used in the production of other products
Capital growth
An appreciation in the value of the assets
Capital(producer) Goods
Products bought by businesses to produce other goods and/or services
Collateral
Financial security for lenders of money
Competitive advantage
Advantage over other businesses due to eg. better customer service
Consumer durables
Goods that can be used repeatedly
Consumer goods
Products sold to the general public
Consumers
People or organisations who use the product
Costs of Production
A business’ expenses from production of a good or service
Customer base
Loyalty of businesses to customers
Customers
People or organisation that buy the product
Economic growth
Increase of production
Economies of scale
Savings from production of goods and services
Entrepreneurs
People who risk their time, money, and other resources to start and manage a business
Entrepreneurship
Knowledge, skills and experiences of entrepreneurs
Executive summary
A brief overview of the business plan
Exogenous shocks
External conditions affecting business plan
Factors of production
Resources used in the production process
Fixed assets/costs
Regular expenses
GDP (Gross Domestic Product)
The monetary value of final goods and/or services
Goods
Physical products
Industrialisation
A shift from primary sector to secondary/tertiary sector for higher added value
Innovation
New or improved ideas
Inputs
Resources businesses uses in the production process
Intrapreneur
An employee who thinks and acts as an entrepreneur within a section of the organisation
Intrapreneurship
Behaving as an entrepreneur but as an employee within a large business organisation
Liability
An amount owed by a business
Need
Necessities that a person must have to survive
Non-durables
Products that don’t last long or cannot be reused
Outputs
Products
Primary sector
Cultivation or extraction of natural resources
Product
Goods and services
Production
Creating goods and/or services
Profit
Financial gain
Quaternary sector
Service sector industries concerned with the collection, processing, and manipulation of information and capital
Revenue
Income
Sectoral change
A shift in the relative share of gross domestic product and employment that is given to each business sector
Services
Intangible products
Tertiary sector
Service sector
Wants
Desires (unnecessary)
Working capital
Money available for a business’ daily work
Employment Creation
To create new jobs
