WEEK 1 Flashcards
purpose of making a profit
Business
tangible items
Goods
action or work performed for monetary compensation
Services
amount or revenue or income
Profits
revenue or income exceeds
Loss
relationship between the price a customer pays
Value
FACTORS OF PRODUCTION:
used to produce
Inputs
FACTORS OF PRODUCTION:
goods or services
Outputs
Factors of Production are also called _____.
Resources
any natural resources land, plants, livestock
Natural Resources
human capital or physical intellectual
Labor
used in production of goods and services
ex. equipment
Capital
ability to recognize a profit opportunity
Entrepreneurship
4 Types of Understanding Factors of Production
- Natural Resources
- Labor
- Capital
- Entrepreneurship
plans, organizes, control leads
Management
transform resources into products
Operations
Identify and satisfy customer needs
Marketing/Sales
plans, obtains, and manages company funds
Finance
knowledge and ideas that help a company keep up and ahead of the competition.
Research and Development
5 TYPES OF FUNCTIONAL AREA
- Management
- Operations
- Marketing/Sales
- Finance
- Research and Development
Types of Management
Planning
Organizing
Controlling
Leading
setting long-term and short-term goals
Planning
organizing the operations
Organizing
notice and take corrective action
Controlling
lead work teams
Leading
heart of a business
Operations
responsible for overseeing the day to day
Operation Manager
customer needs and design products
Marketing
for planning, obtaining, and managing company funds
Finance
short and long term financial capital needs
Finance Managers
is a crucial part of the Finance functional area.
Accounting
is the lifeblood of manufacturing businesses.
Research and Development
individual or group that has a legitimate interest.
Stakeholder
INTERNAL STAKEHOLDERS
Employees
Manager
Owners
EXTERNAL STAKEHOLDERS
Suppliers
Society
Government
Creditors
Customers
Shareholders
are groups of people who work directly within the business
Internal Stakeholders
groups outside the business or people who do not work inside the business.
External Stakeholders
INTERNAL BUSINESS DECISIONS (6)
Human Resources
Capital Resources
Operational Efficiency
Organizational Structure
Infrastructure
Innovation
EXTERNAL BUSINESS DECISIONS (6)
Political Factor
Economic Factor
Sociological Factor
Legal Factor
Technological Factors
Environmental Factors
