Unit 1 Flashcards
Define Business
A business is any profit seeking organization that provides goods and services designed to satisfy customers’ needs.
Define Business Model
A business model is a concise description of how a business intends to generate revenue.
Functional Areas of an Organization
Research & Development, Manufacturing, Production and Operations, Marketing, Sales, Distribution and Customer Support, Finance and Accounting, Human Resources and Business Services.
Five External Environment
Economic, Market, Technological, Social, Legal & Regulatory Environment
An External Environment
An external environment is composed of all the outside factors or influences that impact the operation of the business.
What are the factors of production
Natural Resources, Human Resources, Capital, Entrepreneurship and Knowledge
What are Natural Resources
Things that are useful in their natural state like land, forest, minerals and water.
Define Human Resources in production
People and their individual talents and capacities
Define Capital
Includes money, machines, tools and buildings that a business needs in order to produce goods n services.
Define Entrepreneurship
The spirit of innovation, the initiative and the willingness to take on risks involved in creating and operating businesses.
Define knowledge
Expertise gained through experience or association.
Define economic system
The police’s that define a society’s particular economic structure.
Two main types of economic systems
Free market economy and Planned System
Define Competition
A situation in which two or more suppliers of a product are rivals in the pursuit of the same customers.
Four types of competition
Monopoly, Oligopoly, Pure/Perfect Competition and Monopolistic Competition
