Business Unit 1

Unit 1.1 Key terms - Introduction to business management

Adding value: The process of increasing the worth of a product or service by improving its quality or creating a unique selling point. Business: An organization or enterprise that produces goods or provides services to satisfy customer needs and wants, typically for profit. Business plan: A detailed written document outlining the objectives, strategies, target market, and financial forecasts of a business. Entrepreneur: An individual who creates, organizes, and operates a business, taking on financial risks to do so. Entrepreneurship: The process of identifying business opportunities, taking risks, and innovating to establish and grow a business. Factors of production: The resources required to produce goods and services, including land, labor, capital, and entrepreneurship. Finance and accounts: The department responsible for managing a company’s financial resources, including budgeting, accounting, and financial reporting. Goods: Physical, tangible products that satisfy customer needs and wants. Human resources (HR): The department responsible for recruiting, training, and managing employees to achieve organizational goals. Intrapreneurship: The practice of employees acting like entrepreneurs within an organization by innovating and taking initiative. Marketing: The process of promoting, selling, and distributing a product or service, including market research and advertising. Operations (or operations management): The management of processes involved in the production of goods and services to ensure efficiency and quality. Primary sector: The part of the economy that involves the extraction of natural resources, such as agriculture, fishing, and mining. Production: The process of creating goods or services using factors of production. Quaternary sector: The part of the economy that involves knowledge-based activities, such as information technology and research. Secondary sector: The part of the economy that involves manufacturing and processing raw materials into finished goods. Services: Intangible products that satisfy customer needs and wants, such as education, healthcare, and banking. Tertiary sector: The part of the economy that provides services to consumers and businesses. Value added: The difference between the cost of inputs and the selling price of a product or service.