Adding value

The process of producing a particular good or service that is worth more than the cost of the resources used to produce it.

Business

A decision-making organization established to produce goods and/or provide services.

Business plan

An official document with details of an organization and the proposals for reaching its aims and objectives (goals).

Entrepreneur

A business-minded person who manages, organizes and plans the production process, taking risks with business decision-making.

Entrepreneurship

The knowledge, skills and experiences of individuals who have the capability to manage the overall production process.

Factors of production

The collective term for the resources used in the production process, i.e. land, labour, capital and entrepreneurship.

Finance and accounts

Function of an organization responsible for ensuring that the business has sufficient funds in order to conduct its daily operations.

Goods

Physical products, such as food, clothes, furniture, cars and smartphones.

Human resources (HR)

The function that handles all aspects relate to the workforce, involving all aspects of business operations related to staff (personnel) within an organization.

Intrapreneurship

Describes the traits of individuals who work for an organization (so are not self-employed) but act as entrepreneurs.

Marketing

Function of identifying the needs and wants of customers so that the business can provide goods and services to meet these requirements and desires, usually in a profitable way.

Operations (or operations management)

The process of making goods and providing services from the available resources of a business to meet the needs and wants of its customers.

Primary sector

Business activity involved with the extraction of natural resources, e.g. fishing, mining and agriculture.

Production

The process of creating goods and/or services using the factors of production available to the business.

Quaternary sector

Business activity involving the creation or sharing of knowledge and information.

Secondary sector

Business activity involved with the manufacturing or construction of finished products.

Services

Intangible products, such as haircuts, tourism, public transport, banking, insurance education, and healthcare.

Tertiary sector

Business activity that involves providing services to customers, i.e. consumers and business clients.

Value added

The numerical difference between the cost of factor inputs in the production process and the price that the final output is sold for.