Business- Definitions

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Consumer Goods
The physical and tangible goods sold to the general public. They include cars and washing machines, which are referred to as durable consumer goods.Non-durable consumer goods include food, drinks and sweets that can only be used once.
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Consumer Services
Non-tangible products that are sold to the general public and include hotel accommodation, insurance
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Capital Goods
Physical goods that are used by an industry to aid in the production of other goods and services, such as machines and commercial vehicles.
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Factors of Production
Resources needed by businesses to produce goods or services.
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The Factors of Production
Land, Labour, Capital and Enterprise.
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Land
Natural resources that can be found on the planet. This includes renewable and non-renewable natural resources such as water, wood, fish and physical land itself.
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Labour
The physical and mental human effort used in the production process.
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Capital
The finance needed to set up a business and pay for its continued operations or expansion. Also includes the man-made goods used in the production process (capital goods)
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Enterprise
Risk taking individuals who combine the other factors of production into a unit that is capable of producing goods and services. It provides a managing, decision-making and coordinating role.
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Business functions
Marketing, Finance, Human Resource Management and Operations Management
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Marketing
The commercial processes involved in creating and designing, promoting and selling and distributing a product or service.
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Finance
The management of money and credit and banking and investments.
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Human Resource Management
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organisational objectives.
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Operations Management
The management of processes used to design, supply, produce and deliver goods and services to customers.
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Primary Sector
Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms
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Secondary Sector
Firms that manufacture and process products from natural resources, including computers, brewing, baking, clothing and construction.
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Tertiary Sector
Firms that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications.
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Businesses
Organisation that are involved in the production of goods and/or the provision of services.
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Division of Labour
The specialisation of workers in the provision of goods and/or services by breaking a job down into particular roles or components that are repeated by the same workers.
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Entrepreneurs
People who manage, organise and plan the other three factors of production. They are risk takers who exploit business opportunities in return for profit.
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Industrialisation
The process experienced by a country that moves away from primary production towards manufacturing as its principal sector for national output and employment.
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Opportunity Cost
Cost measured in terms of the next best alternative forgone when a choice is being made.
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Private Sector
The part of the economy under the control of private individuals and businesses, rather than the government. Examples may include sole traders, partnerships and companies.
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Public Sector
The part of the economy that is under control of the government. Examples may include state healthy and educational services, the emergency services and roading infrastructure/
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Structural Change
A shift in the relative share of national output and employment that is attributed to each business sector; i.e. primary, secondary and tertiary sectors.
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Value Added
Is the difference between a product's price and the total cost of the inputs that went into making it. It is the extra worth created in the production process.
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Other cards in this set

Card 2

Front

Non-tangible products that are sold to the general public and include hotel accommodation, insurance

Back

Consumer Services

Card 3

Front

Physical goods that are used by an industry to aid in the production of other goods and services, such as machines and commercial vehicles.

Back

Preview of the back of card 3

Card 4

Front

Resources needed by businesses to produce goods or services.

Back

Preview of the back of card 4

Card 5

Front

Land, Labour, Capital and Enterprise.

Back

Preview of the back of card 5
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