The nature of business
a decision making organisation that uses inputs to produce goods and services for customers who need and wants them.
What does a business do?
Inputs: physical, human and finance resources
Process
Outputs: goods and services
What are the inputs?
Land: natural resources
Labour: manual and skilled labours
Capital: finance needed to set up for business. examples include machinery, tools, etc
Enterprise: a person who brings all the factors os production together. They have an ability to take risks in order to produce and earn profit
What happens in process?
Manufacturing
Construction
Food processing
What are the outputs?
The product - goods and services
The role of business
Combines human resource and finance to create goods and service in order to satisfy needs and wants
What are goods?
Tangible objects that can be used or consumed
What are services?
Intangible (can’t be touched)
Consumer vs customer
consumers are the people who use the good where are customers are people who purchase the goods/services
4 parts in nature of business
- Human resources
- Finance and accounting
- Marketing
- Operations
Human resources
a function that handles all aspects related to workforce
ex- recruitment, training, hiring, firing, etc
Finance and accounts
responsible for ensuring if the business has sufficient funds in order to conduct daily operations
Marketing
responsible for identifying the needs and wants of costumer so that business can provide goods in the requirements
Operations
a process of making goods and services from the available resources
Chain of production
Primary
Secondary
Tertiary
consumers
Primary Sector
activity involving extraction from natural resources
Secondary sector
manufacturing and processing,
where the raw materials are converted into products
Tertiary sector
services to customers
Quaternary sector
sharing knowledge and information which involves technology
