Glossary Unit 1.

1
Glossary of key terms: Unit 1.1 Introduction to
business management

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

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

Goods Physical products, such as food, clothes, furniture, cars and

smartphones.

Human resources The function that handles all aspects relate to the workforce, involving
(HR) 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 The process of making goods and providing services from the available
operations resources of a business to meet the needs and wants of its customers.
management)

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.