Studied by 55 people- unit 1.1 / 1.2 / 1.3 / 1.4 / 1.5 excl. external growth
Factors of production
land, labor, capital, enterprise
business functions
human resources, finances and accounts, operation management, marketing
business sectors
primary, secondary, tertiary, quaternary
primary sector
extraction of natural resources
secondary sector
construction and manufacturing
tertiary
services
private sector
firms owned by individuals
public sector
firms owned by the government
sole trader
for profit business owned by one individual with unlimited liability
partnership
for profit business owned by 2-20 people who are all have unlimited liability
corporation
for profit organisation owned by shareholders who have limited liability
privately held
owner decides who to sell stocks to
publicly held
anyone in general public can buy shares through the stock exchange
non-profit organization
purpose of benefiting society/environment, charity
vision statement
the future of the company, philosophy
mission statement
underlying purpose of how the company currently is
business strategy
long term plan for growth
business tactic
short term plan for survival
stakeholders
any individual/group that has interest in the activities or success of a business
economies of scale
increasing scale of operations to become more efficient
diseconomies of scale
when increasing operations makes the business more inefficient
internal EOS
technical, financial, managerial, marketing, commercial, risk-bearing
external EOS
technological progress, improved transportation and communication, skilled labor, regional specialisation
internal DisEOS
lack control, poor work relationships, boredom
external DisEOS
increasing market rent, traffic congestion, higher wages
advantages of small firm
focus control, government aid, local monopoly power, personalised services, flexibility, less competition
advantages of large firms
brand recognition, more locations, survival, higher status, barriers for competition entry
nature of business
organisation in the process of input to produce goods/services that people need or want
quaternary sector
application of knowledge through service
entrepreneur
a person who sets up a business taking on financial risks in the hope of profit
intrepreneur
an entrepreneur hired outside of the company
challenges for setting up a business
lack in funding, no demand for product, poor marketing, trying to break even
opportunities for setting up a business
growth, earnings, inheritance, challenge, autonomy, security, hobby (GET CASH)
corporate social responsability
labor relations, environment, supplier relations, community
internal stakeholders
managers, employees, etc
external stakeholders
suppliers, distributors, rivals, government, etc
Note
Flashcard