Background to Business 0.0 / 5 ? Business Studies-IGCSEAll boards Created by: mczerniakCreated on: 21-09-21 09:06 Business activity Business operations involved in satisfying customers and making profit. 1 of 24 Capital Money invested into a business; it is a factor of production rewarded by interest 2 of 24 Chain of Production The sequences of stages involved in the production of a product 3 of 24 De-industrialization Occurs where secondary sector becomes less important. 4 of 24 Division of labor Splitting the production process into different tasks, which each worker specializing in a particular task. 5 of 24 Enterprise A business or a company, rewarded with profit. 6 of 24 Factors of Production Resources used in the production, including land, labor, capital, and enterprise. 7 of 24 Industrialization The shift of factors of production from the primary to the secondary sector. 8 of 24 Interdependence When the operations of one department are affected by those of another. 9 of 24 Interest The reward for capital. 10 of 24 Labor Human factor of production rewarded by wages and salaries. 11 of 24 Land A natural factor of production rewarded by rent 12 of 24 Needs Things necessary for survival. 13 of 24 Opportunity cost The next best alternative foregone when making a choice. 14 of 24 Primary sector Business involved in the extraction of raw materials. 15 of 24 Rent The reward for land. 16 of 24 Scarcity Limited supply of resources. 17 of 24 Secondary sector Businesses involved in the production or manufacturing process. 18 of 24 Sector of production Primary, secondary and tertiary business. 19 of 24 Services Intangible activities carried out by people to serve customers. 20 of 24 Specialization The division of labor by assigning a specific task to each worker. 21 of 24 Stakeholders Any individual interested in the activity of a business. 22 of 24 Tertiary sector The sector involved in providing services. 23 of 24 Wants The many goods and services demanded by people that are not crucial for survival. 24 of 24
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