Unit 1: Business Activities And The Economy pg 1-5 Flashcards Preview

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Flashcards in Unit 1: Business Activities And The Economy pg 1-5 Deck (20):
1

Definite the term "Business."

Definition of "Business"
#Business is a general term that describes all ACTIVITIES and INSTITUTIONS that PRODUCE GOODS or PROVIDE SERVICES to SATISFY THE NEEDS OF OUR SOCIETY and are essential in our daily lives.

2

Explain the objective of business. : For the Owner

1. For the Owner (profit making motive)
#To provide him with profit and personal satisfaction.
2. For the Employee
#To provide him with an income.
3. For Society
#Satisfy the wants and needs of people.
#Maximize the satisfaction of society.

3

Define the factors of production.
Land

1. Land/Materials
#Natural resources/tangible inputs used in the production process.

4

Define the factors of production.
Labour

2. Labour
#Physical and mental input of people who work for the business to produce goods and services.
#Includes people involved in the distribution activities and professional services.

5

Define the factors of production.
Capital

3. Capital
#The funds necessary to finance the operation of a business.
These funds may be
@investments by the owners or shareholders,
@a loan from a bank or
@retained profits.

6

Define the factors of production.
Entrepreneurship

4. Entrepreneurship
#The risk-taking by the owner to operate the business.
#Entrepreneur organizes land/materials, labour, capital to provide the goods or services.

7

Explain the factors of production/economic resources used by businesses to generate outputs.
Land

A) Land ☺

Examples:
[Natural state: land for agricultural use or mineral deposits to be extracted.]
{Industrial context, materials: raw materials, tools and common parts or semi-finished goods used directly in the manufacturing process.}

8

Explain the factors of production/economic resources used by businesses to generate outputs.
Labour

B) Labour
#Actual production of goods.
#Distribution activities and professional services.
Examples of labour are the production supervisors, salesmen or office clerks, factory workers, teachers.

9

Explain the factors of production/economic resources used by businesses to generate outputs.
Capital

C) Capital
#The money is used to buy
@raw materials
@pay the workers
@install new machinery
@build an extension of the factor.

10

Explain the factors of production/economic resources used by businesses to generate outputs.
Entrepreneurship

D) Entrepreneurship
#He profits; products are in demand. Money he receives exceeds his expenses.
#He incurs as loss; OTHERWISE, a risk inherent in all business ventures.

11

Explain briefly the relationship between business and others.
1

1. Workers/Employees
#Information about business's financial situation
#Future careers and salaries.
#Need training. To perform job efficiently.
#Minimize accidents and health hazards.
#Observe industrial health and safety laws. Free fr unnecessary hazards.
#Regular consultation with MOM abt workplace safety.
#Complying with the act. (Workplace Safety and Health Act)

12

Explain briefly the relationship between business and others.
2

2. Worker Unions/Trade Union.
E biz shld wrk twrds mr coop rls btwn labour and management as a good working relationship will lead to decreased resistance to change, conflict, turnover, and absenteeism, increased morale, innovation, productivity, and product quality, reduced job insecurity and a favourable corporate reputation.

13

Explain briefly the relationship between business and others.
3

3. Suppliers
They want to know about the business's ability to pay its debts as well as types of goods and/or services that the business would purchase.
#pay its debt
#g&s that the business would purchase.

14

Explain briefly the relationship between business and others.
4

4. Customers
They need to know that the business is able to offer them a secure source of supply that will meet their needs. As the needs of customers change, the business would need to adapt to this changes.

15

Explain briefly the relationship between business and others.
5

5. Government/Economy
The business enterprise produces goods and provides services using the various factors of production available in society. The business enterprises thus contribute to the nation's economic growth. A business enterprise co-exists and is interrelated with other members in the economic system. Therefore, there is a close relationship between business and the economy.

16

Explain briefly the relationship between business and others.
6

6. Welfare Organisations
Welfare Organisations can be an opportunity for businesses to exhibit their involvement in social responsibility. Businesses can participate in financial contributions to there welfare orgsnisations or through volunteerism and provision of professional services.

17

Welfare Organisations
Example

Example, businesses can sponsor gifts in kind, offer scholarships and bursaries and provide free auditing services to the welfare organisations like Club Rainbow and Singapore Children's Society.

18

Super long workers/employees. Part A

Workers are interested in information about the business's financial situation because their future careers and salaries depend on it. Workers also need training so that they can perform on the job effectively. At the same time, workers also need to be aware of potential hazards at work (exposed electrical wires, using equipment only according to the manufacturer's manual, etc.) and take steps to minimize accidents and occupational health hazards like radiation and noise.

19

Super long workers or employees Part B

At the same time, employers need to observe industrial health and safety laws to ensure that the workplace is free from unnecessary hazards. This involves regular consultation with the Ministry or Manpower pertaining to workplace safety and health and complying with the various provisions of the Workplace Safety and Health Act.

20

Etc?

A. Workers may suffer a pay cut or have no pay increasement for that year.
B. workers may be retrenched.
C. Less training to attend for work or self improvement
D. Workers' morale is low and feels insecure about their jobs.