INTRODUCTION TO BUSINESS MANAGEMENT CHAPTER 1 QUESTIONS
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Business meaning
A business is any organisation set up to provide goods and/or services
Factors of production meaning
Factors of production is the combination of human, physical, financial and
entrepreneurial resources to produce goods and services.
4 factors of production :
- Land : Natural resources
- Labour : physical human effort
- Capital : Manufactural resources (tools, equipment)
- Enterprise : Individual with the necessary skills and ability to take risk to generate
output
Value added :
- meaning
- how is it measured
- Value added is the process of creating a product that is worth more than the cost of
the inputs used to produce it
- Value added is measured as the difference between the cost of inputs in the
production process and the price of the final output.
Main business functions:
- Human Resource
- Finance and accounts
- Marketing
- Operations
Main business functions and its roles : Human resource
- oversee staffing within an organisation
- handles human resource issues such as recruitment, dismissal, triaining
- HR department must comply with employment legislation (eg. minimum wage, work
hours)
Main business functions and its roles : Finance and accounts
- to manage the organisation's money
- process payments for its bills and financial compensation to the organisation's
employees
- prepares the final accounts such income statements and balance sheets
Main business functions and its roles : Marketing
- responsible for identifying the needs and wants of its customers, and ensuring the
organisation's goods and services meet these demands in a profitable way
- conduct market research to identify the changing needs of the organisation's
customers
- arranges promotional activities to sell the firm's products at appropriate prices,
distributed to customers at the right place and time
Main business functions and its roles : Operations
AND ASWERS A+ GRADED. Buy Quality Materials!
Business meaning
A business is any organisation set up to provide goods and/or services
Factors of production meaning
Factors of production is the combination of human, physical, financial and
entrepreneurial resources to produce goods and services.
4 factors of production :
- Land : Natural resources
- Labour : physical human effort
- Capital : Manufactural resources (tools, equipment)
- Enterprise : Individual with the necessary skills and ability to take risk to generate
output
Value added :
- meaning
- how is it measured
- Value added is the process of creating a product that is worth more than the cost of
the inputs used to produce it
- Value added is measured as the difference between the cost of inputs in the
production process and the price of the final output.
Main business functions:
- Human Resource
- Finance and accounts
- Marketing
- Operations
Main business functions and its roles : Human resource
- oversee staffing within an organisation
- handles human resource issues such as recruitment, dismissal, triaining
- HR department must comply with employment legislation (eg. minimum wage, work
hours)
Main business functions and its roles : Finance and accounts
- to manage the organisation's money
- process payments for its bills and financial compensation to the organisation's
employees
- prepares the final accounts such income statements and balance sheets
Main business functions and its roles : Marketing
- responsible for identifying the needs and wants of its customers, and ensuring the
organisation's goods and services meet these demands in a profitable way
- conduct market research to identify the changing needs of the organisation's
customers
- arranges promotional activities to sell the firm's products at appropriate prices,
distributed to customers at the right place and time
Main business functions and its roles : Operations
