In producing goods or providing services, businesses need resources. We also call it input. Economists call them factors of production. They consist of four components: LandLaborCapitalEntrepreneurship Land Businesses can use the land to
Business
Human Resources in a Business
What's it: Human resources is a term used to refer to people who work for companies which deliver economic benefits for the companies they work for. They range from staff to top management. They are managed under the human resources department
How Low-Cost Inputs Affect A Company’s Competitiveness
Low-cost inputs are essential for supporting competitive advantage, especially if the firm adopts a cost leadership strategy. What's it: A low-cost input refers to a resource used by the company to produce output and has a lower price than
Value Added: Meaning, Formula, Importance, Way to Create
What's it: Value added is the difference between the input costs to make a product and its selling price. This concept is important in business and economics. For example, in business and management, we can come across this concept when we study
Value Creation: Definition, Shareholder Value, Customer Value
What's it: Value creation is about producing something or making something more valuable. We can use it to refer to many meanings. For example, creating value could be by adding value. Businesses create value by turning inputs into
Examples on How Businesses Add Value to Products
What's it: Adding value means widening the difference between the input price and the selling price of the output. Business activities are basically to add value, namely by processing inputs into higher value outputs. For example, a furniture
What is the Difference Between Needs and Wants?
The difference between needs and wants lies primarily in how essential they are to our survival. We must meet the needs to support daily activities. On the other hand, we don't always have to fulfill wants because they are less essential. At most,
Business Activities: Definition, Importance, Classification
What's it: Business activities refer to any activity involved in producing goods or providing services. For example, they may involve extracting metallic minerals from nature or harvesting agricultural commodities for sale to the manufacturing
Business: Definition, How it Works, Compete
What's it: A business is an entity or activity involved in producing goods and services to satisfy the consumers' needs and wants. Entrepreneurs take risks to build a business by combining resources and using them to produce goods and services.