Chapter 1 Flashcards
What is a business? (15 cards)
Business
Decision-making organization involved in the process of using inputs to produce goods and services.
Adding value
practice of producing a good or service that is worth more than the cost of the resources used in the production process
Consumers
People or organisation that actually use a product
Customers
people or organisation that buy the product
Entrepreneurs
People who manange, organize and plan the resources needed for business activity in pursuit of organizational objectives. They are risk takers who exploit business opportunities in return for profits.
Entrepreneurship
Collective knowledge, skills and experience of entrepreneurs.
Goods
Physical products produced and sold to customers
Needs
Basic necessities for survival
Primary sector
Businesses involved in the cultivation and extraction of natural resources
Production
Process of creating goods and services, adding value in the process.
Quaternary sector
Sub-category of the tertiary sector where businesses are involved in intellectual and knowlege-based activities that generate and share information.
Secondary sector
Businesses concerned with the contruction and manufacturing of products from the materials extracted by primary sector
Services
Intangible products sold to customers
Tertiary sectors
Businesses involved with the provision of services to customers
Wants
People’s desires. Things they would like to have.
