Business in the real world: purpose and nature of businesses

topic 1

what is the definition of a business

A business is an organization that produces goods or provides services to make a profit.

what is a good?

A good is a tangible product that is manufactured or produced for sale to consumers or businesses. such as a car or a computer.

what is a service

A service is an intangible product that involves a deed, performance, or effort offered by one party to another, such as haircuts or legal advice.

what is the difference between a customer and a consumer

A customer is an individual or business that purchases goods or services, while a consumer is the end user of those goods or services. In some cases, the customer and consumer are the same, but they can also be different.

what is the definition of an entrepreneurs

and entrepreneur is someone who is willing to take risks in hope of a reward.

what are 3 objectives of entrepreneurs

be their own boss

want to keep all profits of the business for themselves

to make sure they are employed

have an interest or hobby in which they grow into a business

more flexible working hours

to innovate and create value

what is the definition of a social enterprise

A social enterprise is a business that aims to address social issues while generating revenue. It balances profit-making with social impact, using the profits to further its mission.

what are the four factors of production and what do they mean

CELL- capital-equipment used to provide goods/service

enterprise: skills of people involved in business to identify business opportunities and then bring those resources together

land- physical land where business is located

labour- skills and number of employees employed by a business

what is an opportunity cost

alternative that is forgone when a choice is made. It represents the benefits you could have received by taking a different action.

what are the 4 characteristics of an entrepreneur

innovative

risk taker

hard working and determined

organised

types of sectors and what their basic functions are

The three main sectors are primary, secondary, and tertiary.

The primary sector involves extracting natural resources,

the secondary sector focuses on manufacturing goods

tertiary sector provides services to consumers and businesses.

what are the changes in the business environment

technological change

economic change

legal change environmental expectations