asf Flashcards
(25 cards)
What is a business?
A decision-making organization involved in using inputs to produce goods and/or provide services.
What are goods?
Physical products like smartphones, clothes, books, and food.
What are services?
Intangible products such as haircuts, education, healthcare, and public transport.
Who is an entrepreneur?
An individual who plans, organizes, manages a business, and takes on financial risks.
What does entrepreneurship describe?
The traits of business leaders who drive the business to achieve its goals.
What is adding value?
Producing a good or service worth more than the cost of resources used in production.
What are needs?
Basic necessities required for survival, e.g., food, water, shelter.
What are wants?
Desires beyond basic needs, e.g., smartphones, holidays.
Who is a customer?
Someone who purchases a product.
Who is a consumer?
Someone who actually uses the product.
Name the four main functional areas of a business.
Human resource management, Finance and accounts, Marketing, Operations management.
What does Human Resource Management involve?
Managing personnel, HR planning, leadership, motivation, and employee relations.
What does Finance and Accounts involve?
Managing money, legal compliance, and financial reporting.
What does Marketing involve?
Identifying customer needs, market research, promotion, pricing, branding, distribution.
What does Operations Management involve?
Converting raw materials into finished goods and services.
Define the Primary sector of business.
Extraction and harvesting of natural resources.
Define the Secondary sector of business.
Manufacturing and construction of goods.
Define the Tertiary sector of business.
Providing services to people and organizations.
Define the Quaternary sector of business.
Knowledge-based activities like ICT, R&D, consultancy.
How are the four business sectors connected?
Through the chain of production — from raw materials to consumer delivery.
What are inputs in business management?
Resources like raw materials, labor, capital, and information used to produce goods/services.
What is the process in business management?
The activities that transform inputs into finished goods or services.
What are outputs in business management?
The final goods or services delivered to customers.
List some challenges faced when starting a business.
Lack of finance, unestablished customer base, cash flow problems, marketing, people management, production problems, legalities, high costs, poor location, external influences.
