Chapter 1.1 Flashcards Preview

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Flashcards in Chapter 1.1 Deck (25)
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1

Product

both good and services

2

Goods

physical products (ex. cars,computers)

3

Services

intangible products (ex. haircuts, education)

4

Consumer goods

the physical and tangible goods sold to the general public

5

Capital goods

physical goods that are used by industry to aid in the production of other goods and services

6

Factors of production

the resources needed by business to produce goods or services (the business inputs) -land/natural resources, labour, capital, enterprise

7

Business functions

Human resources, Finance, Marketing (product, price, promotion, place), Operation

8

HR

responsible for managing the personnel of the organization

9

Finance

in charge of managing the organization's money

10

Marketing

responsible for identifying and satisfying the needs and wants of customers

11

Operations

responsible for the process of converting raw materials and components into finished goods, ready for sale and delivery to customer

12

Primary Sector

the sector that is involved with the extraction, harvesting, and conversion of natural resources

13

Secondary sector

manufacturing or construction of products

14

Tertiary sector

providing services

15

Quaternary sector

involved in intellectual activities that generate and share information

16

Sectoral change

shift in the relative share of national output and employment that is attributed to each business sector overtime

17

Factors of sectoral change

Higher household incomes, more leisure time, greater focus on customer services, increasing reliance on support services

18

Entrepreneur

an individual who plans, organizes and manages a business

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Intrapteneur

an employee who thinks and acts as an entrepreneur within a section of the organization

20

Reasons to start a business

Growth, earning, security, transference and inheritance, hobbies, autonomy, challenge

21

Challenge to start a business

lack of finance, cash flow problems, marketing problems, unestablished customer base, people management problems, legalities, production problems, high production costs, poor location

22

Business plan

a report detailing how a business services sets out to achieve its goals and objectives

23

Elements of business plan

the business, the product, the market, the finance, the personnel, the marketing

24

Chain of production

tracks the stages of an item's production, from the extraction of raw materials used to make the product all the way through to it being delivered to the consumer

25

Business

a decision making organization that provides goods and services