1.1 What is a Business1

Apuntes

1.1 What is a Business? Businesses - meets needs and wants of individuals by: ● Producing crops or extracting raw materials from the earth ● creating a product ● providing a service Input resources - process them - generate desired output - stages add value - gain revenue and/ or satisfaction Resource inputs ● Resources needed by business to produce goods / services ● different combinations, depending on what is produced and size of business ○ human: right quality and quantity of people required to make a product or service ○ physical: right quality and quantity of materials, machinery, and land space ○ financial: right quantity of cash and other forms of finance required to make the product or service ○ enterprise: least tangible but crucial, business idea and determination to turn into a functioning business Goods ● physical - tangible ● capital intensive ○ large proportion of land or machinery relative to other inputs, especially labor ● labor intensive ○ large proportion of labor relative to other inputs, especially land or machinery (people) Service ● Intangible - buyer does not take them home Business Functions: Human Resources (HR) ● Appropriate people ...