what is business? Flashcards
Business: pt. 1
Define:
business
a company/brand which was created by an entrepreneur, to make profit + gain recognition amongst other businesses and customers.
an organisation which provides goods + services on a commercial basis to customers
Define:
tangible
goods that are physical products
consumer electronics, cars, etc.
Define:
intangible
services
dental services, hairdressers, etc.
The benefits of business to a society:
what opportunities does business create?
creates employment + developemental human capital
The benefits of business to a society:
through what, does business create?
through R&D + new products, innovations are created
The benefits of business to a society:
how does a business benefit the Gov.?
pays taxes on profits earned + collects taxes for Gov.
The benefits of business to a society:
what do businesses create to provide towards society?
by creating wealth, businesses provide returns on investments
Transformation process
what is the process?
not definition*
inputs => transformation process => outputs
Define:
transformation process
describes what happens inside a business
value added to inputs to create outputs
Transformation process
what are the four processes?
- land
- labour
- capital
- enterprise
Transformation process
what is land?
raw materials
=> end products
Transformation process
what is labour?
human effort + expertise
=> transform products
Transformation process
what is capital?
capital(money) to raise funds to run machinary
Transformation process
what is enterprise?
ideas + innovations
=> end products
Mission statements
what are mission statements?
over-riding goal of business + reason for its existance
mission provides a srategic perspective for business + vision for future
