(1) Introduction to Business Management

• Adding value - Producing a good or service that is worth more than the cost of producing it
• Capital - the finance necessary for a business to carry out its plans
• Competition - the presence of other businesses in the same market wanting to sell to the same consumer(s)
• Consumers - people or businesses who use goods and services
• Customers - people or businesses who buy and pay for goods and services
• Entrepreneurs - People who organise and plan the resources needed for an organisation. They are risk takers who get the profit from the business as their reward.
• Factors of production - the four categories of resources that are used to produce goods and services: land, labour, capital, enterprise
• Finance - the money a business needs in order to operate.
• Goods - tangible products that can be touched and consumed.
• Gross Domestic Product (GDP) - the total value of goods and services produced by a country
• Mass market - a market consisting of a large number of customers for a standard product.
• Needs - things necessary to sustain life.
• Opportunity cost - the cost of something in terms of the next best thing.
• Primary sector - the sector of industry that produces unrefined raw materials.
• Profit - the profit a business makes is the amount by which its income from selling the goods and services it produces exceeds the costs of producing those goods and services.
• Resources - items of limited availability that can be used in human activity.
• Secondary sector - the sector of industry that produces finished or part-finished goods.
• Services - things other people or businesses do for you.
• Tertiary sector - the sector of industry that provides services to businesses and individuals.
• Wants - things chosen to satisfy a need or to make life more enjoyable.