Business test

• Need:

  Something you need to survive such as food, water, shelter
• Wants:

  Something you would like to have but is not essential for you to survive such as hair extensions, a new car, or the latest Xbox
• Business:

  A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and / or services. Examples include a service station, a dentist’s office, a medical practise, a department store
• Service:

  An intangible product that is performed for someone by another person. Examples include a cleaner, a chef, a doctor.
• Product:

  A good, service or idea that can be exchanged in the market. It includes all tangible and intangible features such as size, colour, Image and warranty.
• Inputs:

  The resources (such as labour, finance and equipment) that a firm uses to create outputs
• Outputs:

  The goods and / or services produced using various inputs
• Finance:

  The process of providing and managing the funds that are needed so that goods can be produced and services provided
• Profit:

  The difference between revenue (money) earned and total expenses for the period
• Quality of Life:

  The standard of health, comfort, and happiness experienced by an individual or group
• A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and / or services. Businesses meet both economic and social needs of the community
• •economic and social roles: 1.Profit 2.Employment 3.Incomes 4.Choice 5. Innovation

  6.  Entrepreneurship and Risk

  7.  Wealth Creation

  8.  Quality of Life.
• Businesses

  •Create and add value to business processes , Produce Goods and Services Have economic and social roles
• •Profit is essential if a business is to meet day-to-day expenses (such as production costs, wages, insurance, electricity and rent) and provide a return on the owners’ financial investment.
• •In many cases, the owners of a business will employ other people to perform various activities within the business.•The goods and services the business provides to the community are produced using the knowledge, skills and effort of human resources
• •\In return for their services, a business will pay a form of income to their workforce. This allows the workforce to spend part of their income on satisfying their needs and wants.
• A primary function of business is to produce goods and services for consumers to satisfy their needs and wants.
• Most Australian businesses operate in a competitive market environment. This means that there are several competitors offering similar goods and services.This choice presented to consumers encourages businesses to provide goods and services at the lowest possible price with the highest quality
• Innovation is the process of introducing a new product or improving an existing one
• A business seeks to develop new products, improve product features, and use different marketing strategies through innovation
• Innovation can be applied to the production process, implementing improved methods that may use fewer resources and result in increased output
• Innovation may also be seen in products that offer improved and/or advanced features
• In the modern commercial environment, innovation is crucial for a business to maintain its competitive advantage over other businesses
• •An entrepreneur is an individual who has developed certain ideas and is willing to take a risk to implement these ideas through a business.
• Entrepreneurs take risks by developing strategies to enable their ideas to reach fruition. Through business, entrepreneurs are provided with an avenue to transform their ideas into actual goods and services.
• Wealth refers to the total value of all assets owned by a person or business.
• Profits generated by business are taxed by the government. The government uses this taxation to: fund essential services; improve educational, health and transport facilities; and employ emergency staff, such as police, fire brigade and ambulance officers.
• Business research and development has also contributed to a significant improvement in our quality of life.
• Revenue:

  All funds flowing into the business; may include sales receipts and fees for services, rent, interest from investments and dividends from shares in other businesses.
• Limited Liability:

  The owners (shareholders) are not personally responsible for the debt incurred by the business
• Shareholders:

  Owners of a company; they provide the capital that allows the company to operate.
• Stakeholder:

  People and / or organisations that are affected by the decision or actions of a business
• Innovation:

  The process of introduction a new product or improving an existing one through new ideas, methods, systems and procedures.
• Economy:

  A system where governments, businesses, consumers and other relevant organisations interact to satisfy the needs of society
• Expenses:

  All the costs incurred in earning revenue; this could include wages, the cost of marketing and the purchase of materials and stock
• The economic role of business is to:

  Employ people, Create innovative new products and services for a profit (keeping the economy productive),Take existing products and services and improve them. This is called adding value.