BUSINESS & MANAGEMENT. Unit 1.1 Nature of Business Activity. A business is an organization that uses inputs to produce a product (good or service) . INPUTS. PROCESS. OUTPUTS. A business exists in order to fulfill: Needs: Basic things we need to live (food, water, shelter, …)
Unit 1.1 Nature of Business Activity
A business is an organization that uses inputs to produce a product (good or service)
How we go about making our product or service (how we get it to the customer)
What we are selling to the customer
What we put into our business, raw material, labor and equipment
A Flea Market
A marketis a place that buying and selling take place. Can be a physical market(a store) or non physical e-commerce web mall.
Businesses will strive to have the greatest value added possible for their products and services
In general this is the difference between output price and input costs (thing about value added in simple terms)
When study business decisions we have to understand that people should act rationally
Profit in the business world:
Factors of production are the things that go into making a good or service.
These together make income for a business or person.
Specializationis the ability of having a business master one particular thing. Within a business a business can further specialize their workers. This allows for better overall production because people only concentrate on one thing.