Unit 1.1 Nature of Business Activity
Unit 1.1 Nature of Business Activity
Unit 1.1 Nature of Business Activity
2.
3.
Resources
Land
BUSINESS IDENTIFY THE
NEEDS OF CUSTOMERS
OR OTHER FIRMS
PURCHASE
Labour
Capital
Enterprise
To produce goods or to
provide services, resources
must be used. These
resources are called factors
of production.
This does not just mean the land that the business is
built upon!
It also means anything that you get from the ground!
Like Fishing, oil, farming, logging, minerals.
Land
Labour
Rent
Wages
Capital
Interest
Enterprise
Profit
Increased
productivity
Increased efficiency
Standardization
Higher profit margins
Boredom
Inflexibility
Lack
of autonomy
Capital costs
Business activities are classified by the type of production that takes place
Primary Sector Business Activities.
EXTERNAL FACTORS
Population Trends
Government
Economic Climate
World Affairs
Social Factors
GOODS
Land
OR
RESOURCES
Production
Labour
R&D
Capital
SERVICES
Marketing
Business Activity
Human Resources
Finance
Administration
WASTE
Enterprise
Pressure Groups
Competition
Consumers
EXTERNAL FACTORS
Environmental Factors
O
U
T
P
U
T
THE END