What is a Business? - Business Management Unit 1 - Introduction

hWhat is a Business?



Scarcity (escasez)


wants​ ​ ​ ​ ​ ​ ​ ​ ​ ​ resources

food,​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ land
clothing​ ​ ​ ​ ​ ​ ​ ​ ​ entrepreneurship
shelter ​ ​ ​ ​ ​ ​ ​ ​ ​ capital
security​ ​ ​ >>>>>>>>>>>>>>>>
comfort​ ​ ​ ​ ​ ​ ​ ​ ​ labor
medicine
etc​


– Having wants and limited resources/time at the same time --


“Business activity at all stages involves adding value to resources such as raw material and
semi-finished goods and making them more desirable to, and thus valued by the customer.”




— PRODUCTS —


Goods & Services




Services Can’t be touched. They’re provided by
other people.

Goods Can be touched. Material items.




— Goods —

, Consumer / Capital




A consumer is the one who buys.



Consumer Bought in shops as the final product.




Capital Used in industries.

Financial: When someone has a lot of
“capital”, it means they have a lot of money.

Fixed: Machinery. (The machinery used to
produce these)




Factors of Production
They can also be known as “inputs”


-​ Capital: manufactured goods used to make other goods

-​ Land: natural resources

-​ Labor: People/Workers

-​ Entrepreneurship: Creativity, innovation & risk-taking.




CAUTION: When we’re talking about factors of production, capital doesn't mean money.
(not financial capital)