Business Notes Term 1 Lecture 1

Study Notes

Fulfills consumers' wants and needs.
Ergonomic empowerment enhances user experiences.
Tangible products: physical items that can be seen and touched.
Intangible products: services that cannot be touched but satisfy needs.
Maslow's hierarchy of needs outlines levels: physiological, safety, belongingness, esteem, self-actualization, cognitive, aesthetic, and transcendence.

Businesses and society influence each other significantly.
Addressing the economic problem involves satisfying wants and needs with limited resources.

Agriculture: Utilizes natural resources that cannot be increased or reproduced.
Labour: Engages human resources with varied skill levels; unskilled labour in high supply amid a skilled labour shortage. Influenced by population dynamics and education.
Capital: Represents money and assets used for production; involves long-term assets that generate interest. Includes "Human Capital," which refers to skill, knowledge, and experience.
Entrepreneurship: Coordinating production factors and accepting risks to provide goods/services.

Primary sector: Harvests natural resources, focusing on raw and unprocessed materials.
Secondary sector: Involves manufacturing and processing raw materials.
Tertiary sector: Centers on services and product distribution.

Private/business organisations: Operate to generate profit.
Government organisations: Exist at national, provincial, and local levels.
Non-profit organisations: Aim to fulfill specific social missions without profit motives.

Defined methods for societies/governments to distribute resources, goods, and services.
Market economy: Based on private business operation, supply/demand dynamics, and limited government interference; promotes competition and innovation.
Command economy: Controlled by the government, with state ownership of resources; limited consumer choices and regulated prices.
Mixed economies: Combine elements of market and command economies, with shared control over industries and resources.

Market economy (Capitalism): Involves private initiatives with minimal government involvement. Examples include the US, Hong Kong, and Singapore.
Command economy (Communism): Features state control over production and limited property ownership, seen in China and North Korea.
Mixed economies (Socialism): Balance government control in key sectors while permitting private enterprise; exemplified by South Africa and China's dual approach.

Sole proprietorship: Owned by one individual, characterized by simplicity and lower complexity.
Partnership: Business owned by two or more individuals who share responsibilities.
Company: A formal business structure with shareholders and structured governance.