What is a business Flashcards
What is a business?
A business is an economic activity that involves the exchange purcheses or sale production of goods and services with a motive to earn profits and satisfying the needs of customers.
why do people do business?
the reason my people do business is to earn profits while taking a finacial risk for hope of profits.
what are wants and needs
Wants are desires or aspirations that go beyond basic human needs, However needs are . Needs are things that people require to survive.
What is capital
Capital is the money and assets used to start or manage a business.
Lebor
is s physical and mental efforts of humans in order to produce goods and services
What is production?
Production is the process of making or manufacturing goods and products from raw materials or components.
Indirect production
Indirect production involves producing goods and services for the purpose of exchange or sale in the market.
Direct production
Direct production, also known as subsistence production, is when individuals or communities produce goods and services primarily for their own consumption, rather than for sale or trade.
profit
Profit is in the financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
service
Services are intangible , value-added activities that a company provide to its customers.
Scarcity
Scarcity is the demand for a good or service is greater than the availability of the good or service.
Division of labour
The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialize.
