IB Business Management What is a business?

Learning Outcomes To identify inputs, outputs and processes of a business

What Is a Business? A business can be defined as an organisation that provides goods and services to others who want or need them

Goods Goods are physical objects that can be used or consumed

Services Services are non tangible

What Does a Business Do? The Business INPUTSOUTPUTS RAW MATERIALS LABOUR EQUIPMENT LAND GOODS SERVICES The overall aim of most businesses is to spend less on their inputs than they earn from their outputs and make a PROFIT Processes

The 4 factors of production Factors of production are the INPUTS that a business uses to produce their goods and services

Good or Service Land Labour Capital Enterprise Profit Wages Rent Interest

Task McDonalds Split a piece of paper into 4 sections. Land, Labour, Capital and Enterprise. Write down as many resources McDonalds use to produce their goods and services that fit into these 4 categories

Self Assessment Do You: Know what the 4 factors of production are? Do you understand why each one is needed for business to exist? Know the difference between inputs, processes and outputs Can you give examples of each Know the difference between a product and a service?