Unit 1.1: The purpose and nature of business

Keywords from Unit 1.1 Year 9

Business/Enterprise

An organisation that takes raw materials, and using workers and machinery, converts them into goods and services to satisfy the needs and wants of consumers.

Entrepreneur

A person who sets up a business

Factors of production

The resources people use to produce goods and services.

Goods

Actual objects, tangible, and they are produced and consumed.

Needs

Something that is required to sustain life.

Opportunity cost

What is sacrificed whenever a business decision is made.

Primary industry

where raw materials are extracted.

Secondary industry

Where raw materials are converted into finished products using capital and labour

Service

actions done for you or someone else

Tertiary industry

Where products are sold to customers or services are provided

Wants

Something not needed to sustain life but helps to make life easier.

Customer

Someone who buys the good or product.

Consumer

Someone who uses/ produces the good or product.

Business functional area

A unit, department, or team tasked with specific organizational functions.

Marketing

Promoting sales or uses of your service.

Finance

Anything linked to costs/ money.

Operating

Daily, expected activities of the business.

Human resources

Any admin work that works with staff.

Land

raw materials used

Labour

work of staff

Capital

refers to money and machinery