1.1 Intro to Business

Business sectors

primary, secondary, tertiary, quaternary

A need

something we require to have to live e.g. food, water, clothes.

A want

something we desire but do not necessarily need for survival. e.g. jewelry. It is unlimited.

Opportunity cost

loss of an alternative due to the alternative you chose.

Business

is a decision making organization that produces goods and/or provides services.

Why businesses exist?

to satisfy needs and wants of people, organizations, and governments.

Stages in the production of finished goods

Input (raw materials, components, machinery, equipment, labor), processes, outputs(Provision of final goods and services)

Factors of production

land, labor, capital, enterprise

Market

a place or process where customers and sellers meet to trade.

Consumers

ones that actually use the product.

Consumer goods

products sold to the public. durable and non durable.

Services

intangible products provided by businesses

Profit

revenue-costs

Revenue

total amount of money brought in by the company by selling products/services

4 functional areas of business

production, marketing, finance, HR

Primary business

Any business that grows goods or extracts materials from the land (farming, mining, fishing)

Secondary business

involved in manufacturing. uses raw materials and other resources for making usable products.

Tertiary business

business that provides services

Quaternary biznes

carries out research and analyses information.

Reasons for starting a business (6)

growth, earnings, inheritance and transference, challenge, autonomy, security, hobbies

NINE Factors to consider when starting a busines

1. The idea 2. finances 3.Human resources 4.skills 5. fixed assets 6.suppliers 7. customers 8.marketing 9.legalities