1.1 what is a business

Adding value

is the practice of producing a good or service that is worth more than the cost of the resources used in the production process.

Businesses

are organizations involved in the production of goods and/or the provision of services.

Consumers

are the people or organizations that actually use a product.

Customers

are the people or organizations that buy the product.

Entrepreneurs

are the people who manage, 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

refers to the collective knowledge, skills and experiences of entrepreneurs.

Goods

are physical products produced and sold to customers, such as laptops, books, and perfumes

Needs

are the basic necessities that a person must have to survive, including food, water, and warmth

Primary sector

refers to businesses involved in the cultivation or extraction of natural resources, such as farming, fishing, and forestry.

Production

is the process of creating goods and/or services, adding value in the process.

Quaternary sector

is a sub-category of the tertiary sector, where businesses are involved in intellectual and knowledge-based activities that generate and share information, such as research organizations.

Secondary sector

refers to businesses concerned with the construction and manufacturing of products.

Services

are intangible products sold to customers, such as the services provided by airlines, restaurants, and cinemas

Tertiary sector

refers to businesses involved with the provision of services to customers.

Wants

are people's desires, i.e. the things they would like to have, such as new clothes, holidays, and jewelry.