Unit 1 chapter 1 Flashcards
What is a business
Any activity conducted by an individual or individual(s) to produce or sell goods and services with the main objective to make a profit.
Public vs Private Sector
Public sector are business that are operated by the government.
Private sectors are business are owned by individuals or companies.
The three industry sectors
Primary - business involved with extracting raw resources from nature.
Secondary- businesses using the raw materials to manufactor and assemble products.
Tertiary- involves the providig services, including retail, wholesale and transport
Industry division
Business can be also be categorised by the individual industries they operate in.
Business opportunity, how they are sparked
a set of circumstances that might potentially lead to starting a successful business.
Some business opportunities are sparked by:
innovation, Entrepreneurship, market opportunities, changing customer needs, research and development, technological development and global markets
sole trader
one owner
shareholders
owners of a company
revenue
money recieved from selling goods and services
assets
items of value a business owns
market share
a proportion of sales in a given market held by a business
motivations for starting a business
desire for independence, can choose when, who and where you work.
Profit: desire to make money
Market need: identify lack of available goods and services .
Social: focus on community or environmental need, opportunities for unemployed, disadvantaged people.
Business goals
provides businesses with a purpose, describes what a business expects to achieve, allows owners to develop ideas for a business
vision statement
describes where a business wants to be in the future
mission statement
states how a business will achieve it’s vision
Smart goals
Specific, Measurable, Attainable, Relevant, Timebound
The three types of Goals
Financial: to make profit, increase sales, increase market share, expand the business ect.
Social: community service, social justice
Personal: Generally reflect the goals of the business, improve products, financial security
Some characteristics of successful business managers
take risks, innovative, motivated, keen to learn, initiative.
and being able to cope with stress and pressure
successful entrepreneurs do:
wiling to seize opportunities, prepared to take risks. innovative, enterprise, shared vision
business concept
-describes the core activities of the business and specific features and values of the goods or services it provides
How do business concepts develop
when market research and feasibility studies are conducted.
Protecting a business idea
Intellectual property: potential business owner’s idea or concept, for example a new creation, brand or design that have a lot of value.
trademark
exclusive rights to use a logo sound or picture
patent
exclusive rights to a process method or a device
copyright
protection of original music, art and films
