an organisation that exists to provide goods and services on a commercial basis to customers.
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why do businesses exist?
-provide goods and services to meet our needs
-create employment and develop human capital
-drive innovation through R&D and new products
-pay tax
-create wealth (economy)
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start-ups:
a new business enterprise, formed by one or more entrepreneurs
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role of the entrepreneur:
-spots business opportunities
-takes calculated risks to gain possible future returns
-acts as catalyst for the creation & growth of new business enterprises
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transformation process:
this describes what happens inside the business, this is where value is added to inputs to create outputs
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inputs:
-people
-finance
-capital equipment
-land and natural resources
-materials and components
(TRANSFORMATION PROCESS ADDS VALUE)
outputs:
-goods
-services
-waste products
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key inputs~
land:
labour:
capital:
enterprise:
physical location
workers
machinery and equipment
individual in control of the above
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adding value:
the difference between the price of the finished product/ service and the cost pf the inputs involved in making it
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Other cards in this set
Card 2
Front
why do businesses exist?
Back
-provide goods and services to meet our needs
-create employment and develop human capital
-drive innovation through R&D and new products
-pay tax
-create wealth (economy)
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