Enterprise and entrepreneurs, the role of business in adding value, economic sectors, and the main forms of legal business structure in the private and public sectors.
Business activity and adding value
A business combines resources — the factors of production (land, labour, capital, enterprise) — to produce goods and services that satisfy customers' needs and wants. The central purpose is to add value: the difference between the cost of bought-in inputs and the selling price of the output.
Adding value lets a firm charge more than it pays for inputs, helping it survive and make a profit. Methods include branding, improved quality, convenience, speed of service and after-sales support.
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