The document is a summary of Business Management 113 ( Undergraduate, First year ). Chapter 1 - Factors of production, Risk, The Business Environment, etc.
The documents contains of 14 pages.
GOODS : Goods are tangible items manufactured by businesses, such as laptops ( SOMETHING WE
PURCHASE OR SELL )
NOT FOR PROFIT : A not-for-profit organization is an organization that exists to achieve some goal
other than the usual business goal of profit. ( HELP COMMUNITY )
STANDARD OF LIVING : The standard of living of any country is measured by the output of goods
and services people can buy with the money they have. ( MOBILE PHONE, SOMETHING EXTRA YOU
DO NOT NEED )
REVENUE : Revenue is the money a company receives by providing services or selling goods to
customers ( WHEN U SELL PRODUCTS, IT’S THE MONEY U GET FOR SELLING YOUR SERVICES )
PROFIT : ( AFTER U HAVE PAID ALL YOUR EXPENCES, THE MONEY U HAVE LEFT )
SANITATION ISSUES : CASH IN BANK FOR NESSESARY THINGS
SHAREHOLDER : (CAKE ) A PART OWNER
STAKEHOLDER : SOMEONE WHO HAS A INTEREST IN THE BUSINESS “SCHOOL” – PARENTS –
DEPARTMENT OF EDUCATION - ( MINE ) – GEVERNMENT – DISTRIBUTERS – COMMUNITIES WHERE
THEY DO THE MINING
FACTORS OF PRODUCTION :
To provide goods and services, regardless of whether they operate in the for-profit or not-for-profit
sector, organizations require inputs in the form of resources called factors of production.
• HUMAN RESOURSES ( LABOR )
• ENTREPRENEURSHIP
• MATERIAL / NATURAL RESOURCES ( YOU NEED SYSTEMS YOU NEED TO BUY THE BEST I.T.O
WHAT U CAN AFFORD )
• CAPITAL ( YOU NEED FINANCIAL RESOURCES – MONEY )
, RISK :
Risk is the potential to lose time and money or otherwise not be able to accomplish an
organization’s goals.
• AN EVENT OR RECCURANCE
• DEPENDS ON SITUATION IF U CAN PREVENT A RISK / U CAN PLAN
• RETURN = PROFIT HIGH RISK = HIGH RETURN
• “risk” includes uncertainty, as well as other factors outside of one’s control, which may impact
the business.
• Knowledge of “risks” allows one to develop a plan, to:
– Protect resources
– Maximise resources
THE BUSINESS ENVIRONMENT ( PESTLE ) :
P : Political
• The political climate of a country is another critical factor for managers to consider in day-to-day
business operations.
E : Economic
• This category is one of the most important external influences on businesses.
• Fluctuations in the level of economic activity create business cycles that affect businesses and
individuals in many ways.
• When the economy is growing, eg. unemployment rates are low and income levels rise, inflation
and interest rates are other areas that change according to economic activity.
• The forces of supply and demand determine how prices and quantities of goods and services
behave in a free market.
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