SP 1.1 Flashcards
(38 cards)
Primary Sector
industries involved in excretion of natural resources and raw materials e.g mining industries, forestry, fishing, agriculture
Secondary Sector
industries involved in production of finished goods, turns raw material into finished products e.g iphone/computer manufacturing
Tertitary Sector
industries involved in providing services to other businesses or consumer e.g retail, healthcare, entertainment
Quartenary Sector
industries involved in creation of and distribition of knowledge e.g R&B consultant, research and development, uni/schools, AI resources
Chain of production
Extraction -> Manufacturing -> Services -> Consumers
Inputs
- Capital
- Land
- Enterprise
- Labour
Processes
- HR
- Operations Management
- Finance Marketing
Outputs
- Goods
- Services
What is a business?
A business is a decision-making organization involved in the process of using inputs to produce goods and/or services.
What are the four functional areas of a business?
- Human resources
- Finance
- Marketing
- Operations management
What does human resources manage?
- Workforce planning
- Recruitment
- Training
- Appraisals
- Dismissals
- Redundancies
- Outsourcing
What is the role of finance and accounts in a business?
Manages the organization’s money and ensures accurate recording and reporting of financial documents.
What are the seven Ps of marketing?
- Product
- Price
- Place
- Promotion
- People
- Processes
- Physical evidence
What is the responsibility of operations management?
Responsible for converting raw materials and components into finished goods and providing services to customers.
What is the chain of production?
Links all the production sectors by tracking the stages of an item’s production from raw materials to delivery.
What is an entrepreneur?
An individual who plans, organizes, and manages a business, taking on financial risks in doing so.
List characteristics of entrepreneurs.
- Taking substantial risks
- Having a vision for the business
- Rewarded with profit
- Responsibility for employees
- Personal costs from failure
Name common challenges for new businesses.
- Production problems
- Legalities
- Unstable customer base
- Marketing problems
- Poor location
- Cash flow problems
- High production costs
- External influences
- Lack of finance capital
- People management problems
What does the mnemonic GET CASH represent?
Opportunities for starting up a business.
Fill in the blank: Businesses can be classified according to the stage of production they are engaged in, known as _______.
[sectors of an economy]
What is the relationship between the level of development and the dominant sector?
The balance between the sectors can vary substantially across countries, depending on the level of industrialization.
What mnemonic can help remember potential opportunities for starting a business?
GET CASH©
What is one reward to entrepreneurs who own their own businesses?
Capital growth
What does capital growth refer to?
Appreciation in the value of the assets of the business
