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15 Cards in this Set
- Front
- Back
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inputs
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The resources needed to produce goods and services
1. raw materials 2. labour 3. money 4. owners/directors |
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outputs
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goods and services
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constraints
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restrictions on what a business can do:
1. competition (from other firms) 2. Environment 3. Legislation (i.e. health and safety laws. 4. The economy (i.e. - a recession or a boom period) |
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Functions of a business
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1.Finance
2. Production 3. Marketing 4. Human Resources |
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Finance
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makes sure company collects money owed to it, that company pays its bills, sets budgets
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Production
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Produces the goods:
1. efficiently using up-to-date methods 2. cuts waste 3. keeps up quality |
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Marketing
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1. market research -finds out what customers want
2. adding value 3. informing customers 4. creating desire |
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Human Resource Management
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1. wellbeing of employees
2. hiring 3. training & motivating 4. letting employees go 5. making sure business in line with laws protecting workers |
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Adding value
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what a business adds to a product to convince customers to pay more than the cost of inputs
1. manufacturing 2. image |
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types of product
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1. consumer non-durable goods
2. consumer durable goods 3. industrial goods 4. services |
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consumer non-durable goods
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a product that can only be used once - i.e. food, drink, petrol
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consumer durable goods
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a product that can be used more than once - i.e. cars, furniture
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industrial goods
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products bought by businesses, used to produce goods - machines, equipment etc.
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services
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all purchases that do not involve something you can touch - holidays, banking, insurance,
Some are provided by the government - policing, defence etc. |
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Other useful purposes (functions) of business
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1. employs pople
2. source of revenue (money) for: owners of business the government (taxes) 3. helps the balance of payments - sells to other countries bringing money into the UK |
