Test 1.1 + 1.2 Flashcards
(28 cards)
Business Functions
- Business & Organisation
- Human Resources Management
- Marketing
- Finance & Accounts
- Operations Management (Production)
Production Chain
resource input, production process, product output
Resource inputs
Human, capital, physical, enterprise
Production processes
manufacturing, food processing, construction
Product outputs
goods and services
Primary Sector
Goods: mining, oil drilling, fishing, farming
Secondary Sector
Goods: where raw materials are processed by manufacturing (e.g. consumer goods)
Tertiary sector
Services: financial, tourism, education, security, sales, delivery
Quaternary sector
(Sub Section to 3rd sector) Services (focused on knowledge): IT sector, media and web services, cybersecurity, cloud storage
Capital intensive production process
automotive, airline, oil and gas, mining, manufacturing, and real estate
Labour intensive
a large amount of labor to produce its goods or services (e.g. garments)
Sectoral change
the more advanced a sector is, the higher the need for more qualified workforce. generally MEDCs move away from primary sector
Circular economy
- Eliminate waste & pollution (design flaws)
- Circulate products & materials (products can be reused)
- Regenerate nature (nature wastes nothing)
Private Sector
Owned by individuals, businesses earn profits, they aren’t controlled by the government
Public sector
Owned or operated by the government, dedicated to services rather than profits (schools, hospitals, etc.), financed through taxes
For-profit commercial enterprise
Earns profits and distributes them to the owners
For-profit social enterprise
Most profits are reinvested into the business, the owners get the rest of the profit (Everything in private sector, + for profit in public, and coops)
Non-profit social enterprise
Goal is to improve social/environmental outcomes, funding through donations, all surplus is reinvested into business (NGO & Charity)
Shareholders
Owners of stocks, 1 stock = 1 vote, receive dividends, protected by limited liability
Privately Held Company
Owned by family/friends who are shareholders, shares are not sold to public and are not on stock exchange, limited liability. Documents:
1. Memorandum of Association (details of company)
2. Articles of Association (roles and responsibilities of BOD and shareholders)
Publicly Held Company
offer IPOS for capital and become public, shareholders earn dividends, publish financial accounts, can be taken over by other companies with largest quantity of shares, limited liability
Cooperatives
“members”, social purpose above profit, limited liability, every member has a say or elective representation
Non Profit Social Enterprise
A charity or NGO, goal is to improve social/environmental outcome, revenue is from donations, doesn’t pay taxes (except some NGOs), private sector, profits are named SURPLUS which is reinvested into business
SWOT
Internal: Strengths + Weaknesses
External: Opportunities + Threats
