Business

• A business is an organization that produces goods and services for sale to consumers.
• A good is a physical product
• A service is an inatngible prouduct (not a physical product)
• A customer is someone who buys from a business
• A consumer is someone who uses goods and service's produced by a business.
• A need is a basic human requirement.
• A good is a human desire.
• People who start a business are call entrepreneurs
• Some objectives for an entrepreneur: they want to be there own boss, they want to keep all the profits, they have spotted a business opportunity, they want more flexible working hours .
• An entrepreneur is someone who is willing to take risks involved in starting a new business
• Social enterprise is a business that is set up to help society rather than make profit.
• Factors of production - Land, Labour, Capital, Enterprise
• land- the physical land and site the business is located on
• labour- skills and numbers of employees employed by a business
• capital- the equipment used to produce goods or services such as machinery
• enterprise- the skills of people involved in the business to identify business opportunities.
• opportunity cost- the cost of the next best alternative that is foregone when a decision is made
• interest- is the money paid by a bank as a reward for lending money to someone
• opportunity cost is what we give up or sacrifice whenever we decide to do anything.
• The three sectors of business are primary secondary and tertiary
• Primary sector- extracting earths natural resources such as oil. e.g farming and fishing
• Secondary sector- manufacturing the product e.g builders, manufactures
• Tertiary sector- business that provide and sell services to other businesses and to the public. e.g supermarkets and estate agents.
• Functions of business- marketing, operations, human resources, finance
• Inflation- the general rise in the price level of goods and services in the economy.
• Gross Domestic product(GDP)- Total value of all goods and services produced in a country in a year
• Demand- is the amount of product that customers wish to purchase at a given price
• Changes in the business environment- technological change, economic change, legal change, environmental expectations.
• legal factors= marketing
• social factors= operations
• technological factors=human resources
• economic factors= finance