1.1 An Introduction to Business Management Flashcards
(21 cards)
What is a business?
A business is any organization that uses resources to meet the needs of customers by providing a product or service that they demand.
What are the three stages of business activity?
Inputs - processes - outputs
What are resources?
the factors of production = the inputs
What are the four main resources?
Capital
Enterprise
Labour
Land
What is capital?
The finance needed to set up a business & paying for its operations + man made resources
What is enterprise?
The driving force of the business
What is labour?
Manual & skilled labour, workforce of the business
What is land ( associated with business)?
Land also includes renewable & non-renewable resources of nature.
How do you calculate profit?
Profit = total revenue - total costs
What are the four business functions?
Marketing
Finance
HR
Operations Management
What are the four economic sectors?
Primary
Secondary
Tertiary
Quaternary
What is the primary sector? And give an example
Business involved in the cultivation or extraction of natural resources. E.g. agriculture, fishery, oil extraction.
What is the secondary sector? And give an example
The construction & manufacturing of physical products from natural resources
What is the tertiary sector? And give an example
The provision of service to consumers & other businesses. E.g. hotel, bank, school.
What is the quaternary sector? And give an example
Provides services focused on knowledge and IT. E.g. IT software, E- commerce
What is structural change?
Refers to the shift in relative share of national output & employment that occurs in each economic business sector
What is industrialisation?
Growing importance of secondary sector in developing (emerging) countries (shift from primary to secondary sector) as their principal sector for national output & employment
What is deindustrialisation?
Growing importance of tertiary sector in developed economies as their principal sector for national output & employment
What does GDP mean?
Growth domestic product: work out how many product are being produced in a country
What is an entrepreneur?
An entrepreneur is someone who takes a financial risk of starting and managing a new venture
Give some reasons why someone would start a business
Rewards Unemployment Desire for independence Business opportunity Make more money than in current job Challenge Interest Sharing an idea
