The purpose and nature of businesses revision notes

An organisation that produces goods or supplies services to customers in exchange for money.

A tangible product that can be stored, transported and consumed.

The monetary value of the next best alternative that is forgone when a decision is made.

Land is the natural resources used in production, such as raw materials, land for buildings, and water.

The part of the economy that extracts natural resources, such as farming, fishing, mining and forestry.

A sector is a broad category that groups businesses based on the type of activity they perform, such as primary (extracting raw materials), secondary (manufacturing), or tertiary (services).

An entrepreneur is a person who creates, manages, and takes responsibility for a new business venture, accepting the associated risks.

Innovation is the creation or improvement of products, services, processes or business models that add value for customers or stakeholders.

An entrepreneur is an individual who creates, develops, and runs a new business venture, taking on financial risk in the hope of profit.

A business environment that is constantly changing due to factors such as technology, consumer behaviour, competition, and regulation.

Expectations that businesses should operate in ways that minimise negative environmental impact and promote sustainability.