Business Activity
A good or service that is essential for living
What is a need?
A consumer pays this
What is price?
A bearded Canadian lumberjack cutting down trees in the forest is an example of activity in this sector
What is the primary sector?
This is a document outlining a market need and solution, target market, competition, sources of finance, budget, forecast sales and marketing tactics.
What is a business plan?
Production is divided into separate tasks and each employee does one task
What is division of labour?
the process of producing goods and services to satisfy consumer demand
What is business activity?
A firm pays these in order to produce goods
What are costs?
Businesses that are owned by individuals are part of this sector
What is the private sector?
An individual who combines land labour and capital to provide added value and satisfy consumer wants and needs for a profit
What is an entrepreneur?
Machinery and delivery vehicles used by businesses to produce other goods and services
What are capital goods?
land, labour, capital, enterprise
What are the factors of production?
A firm earns this by selling goods/services
What is revenue?
An economy where resources are controlled by both the government and private individuals
What is a mixed economy?
These are three ways in which a government can help start up companies.
What are grants, loans, advice?
subsidies, training programs, lower taxation
Firms that supply a service to consumers and other businesses
What is the tertiary sector?
Products that can be seen and touched and are sold to the final consumer
What are tangible consumer goods?
Revenue minus costs
What is profit?
An example is that the government of Japan recently sold their postal service to a private company.
What is privatization?
These are the four ways to measure business size
What is market share, sales, number of employees, capital employed?
A business expands by developing new products
What is internal growth?
the difference between the value of inputs and the value of outputs
What is added value?
the benefit that could have been gained from an alternative use of the same resource
What is opportunity cost?
A country moving from primary sector activities to secondary sector activities is undergoing this
What is industrialization?
The business does not have enough cash to pay for its expenses and debts
What is a liquidity problem?
A chocolate manufacturer takes over a cocoa producer
What is backward vertical integration?