UNDERSTANDING BUSINESS ACTIVITY Flashcards
Business activity
NEEDS
GOODS AND SERVICES ESSENTIAL FOR A LIVING
WANTS
GOODS AND SERVICES NOT ESSENTIAL FOR A LIVING
SCARCITY
LACK OF SUFFICIENT RESOURCES TO FULILL THE TOTAL WANTS OF THE POPULATION
OPPORTUNITY COST
THE NEXT BEST ALTERNATIVE FOREGONE
SPECIALISATION
WHEN PEOPLE AND BUSINESSES FOCUS ON WHAT THE ARE BEST AT
LAND
ANY NATURAL RESOURCE USED IN PRODUCTION
LABOUR
MENTAL AND PHYSICAL EFFORTS OF EMPLOYEES
CAPITAL
FINANCE ,MACHINERY AND EQUIPMENT NEEDED TO MANUFACTURE GOODS
FACTORS OF PRODUCTION
RESOURCES NEEDED TO PRODUCE GOODS AND SERVICES
DIVISION OF LABOUR
WHEN THE PRODUCTION PROCESS IS SPLIT UP INTO DIFFERENT TASKS AND EACH WORKER PERFORMES ONE OF THESE TASKS.
THE ECONOMIC PROBLEM
THERE EXIST UNLIMITED WANT S
BUT LIMITED RESOURCES TO PRODUCES THE GOOD AND SERVICES TO SATISFY
ADDED VALUE
THE DIFFERENCE BETWEEN THE SELLING COST OF A PRODUCT AND THE COST OF MATERIALS AND COMPONENT
PRIMARY SECTOR
EXTRACT AND USES THE NATURAL RESOURCES TO PRODUCE THE RAW MATERIAL
SECONDARY SECTOR
MANUFACTURE GOODS USING
RAW MATERIALS PROVIDED BY THE PRIMARY SECTOR
TETRIARY SECTOR
PROVIDES SERVICES TO CONSUMERS AND OTHER SECTORS OF INDUSTRY
PRIVATE SECTOR
PRIVATE INDIVIDUALS OWN AND RUN BUSINESSES WITH THEIR OWN AIMS AND OBJECTIVES
PUBLIC SECTOR
GOVERNMENT OWNS AND RUN THE BUSINESS VENTURE
ENTERPRENEUR
A PERSON WHO ORGANISES ,OPERATES AND TAKES RISKS FOR A NEW BUSINESS VENTURE
BUSINESSES
A COMBINATION OF THE FACTORS OF PRODUCTION TO MAKE GOODS AND SERVICES TO SATISFY PEOPLE WANT
MIXED ECONOMY
HAS BOTH THE PRIVATE AND PUBLIC (STATE) SECTOR
DE-INDUSTRALISATION
OCCURS WHEN THERE IS A DECLINE IN THE IMPORTANCE OF THE SECONDARY MANUFACTURING SECTOR OF INDUSTRY IN A COUNTRY
CAPITAL
THE MONEY INVESTED INTO A BUSINESS BY THE OWNERS
BUSINESS PLAN
IS A DOCUMENT CONTAINING THE BUSINESS OBJECTIVES AND IMPORTANT DETAILS ABOUT THE OPERATIONS FINANCE AND OWNER OF THE NEW BUSINESS
CAPITAL EMPLOYED
IS THE TOTAL VALUE OF CAPITAL USED IN THE BUSINESS
