Studied by 16 people
Role of business
To combine human, physical and financial resources to create goods and services.
Business activity
Businesses combine different input factors to produce outputs as goods or services, which can be consumed by customer.s
Factors of production
Land, labor, capital, enterprise
Land
The place where business is located
Labor
The physical and mental human effort used in the production process
Capital
It can be financial (money used to set up the business) or physical (machinery and tools used in production)
Enterprise
The entrepreneur develops an idea, and then organizes other resources to carry out the business activity
Business functions
Operations management, marketing, Human Resources management, and finance.
Operations management
Changing natural resources into a product or the supply of the service.
Marketing
Identifying and satisfying consumer needs
Human Resources management
Managing the workforce in the organization
Finance
Responsible for the control of money flow in a business.
Primary production sector
The cultivation and extraction of natural resources from the earth
Secondary production sector
The manufacturing, processing and construction of products by transforming the raw materials produced in the primary sector
Tertiary production sector
The provision of services
Needs
What a person needs to have to survive
Wants
What a person wishes to have
Goods
Physical products
Services
Intangible products
Client
Person who buys the product
Consumer
Person who uses the product
Note 
Flashcard (20)