Recapping Year 1 Business Concepts

Flashcards covering essential Year 1 Business concepts including reasons for business existence, economic sectors, importance to the economy, objectives, mission statements, and key terms like SMART.

What are the four basic inputs in business?

Land, labour, capital, enterprise.

Why do businesses exist?

To make goods and provide services, to fill gaps in the market, and meet consumer needs.

Describe the basic business process.

Inputs are transformed through a process to create outputs.

What are the common sectors that businesses can be organised into?

Primary, secondary, tertiary, and quaternary.

What happens to inputs during the transformation or production process undertaken by a business?

Value is added to them, creating opportunities.

List reasons why business is important to the UK economy.

Paying tax, enhancing reputation, creating job opportunities, and creating wealth for our economy.

Give reasons why businesses set business objectives.

To work towards a business plan, set measurable targets, and provide motivation.

What is the link between corporate and functional objectives?

Functional objectives (e.g., HR, operations, marketing, finance) often link to and help achieve corporate objectives.

What does the mnemonic SMART stand for?

Specific, Measurable, Achievable, Realistic, Time-constraints.

What is a mission statement?

The overarching goal or mission of a business that it portrays and communicates to stakeholders.

Identify some common business objectives.

Survival, increased sales revenue, profit, ethical conduct, growth, increased market share, and cash flow.

Explain the relationship between mission and objectives.

The mission is the overall goal to work towards, and objectives help a business work towards its mission.