1. Understanding Business

Question 1

What is an organisation?

Answer 1

a group of people working together in a controlled way, with a common aim

Question 2

What is a business?

Answer 2

an organisation that exists to satisfy needs or wants, by supplying goods or services

Question 3

What is production?

Answer 3

where goods are made by going through a number of stages. they can be semi-finished goods which go o not another stage of production

Question 4

What is consumption?

Answer 4

the using up of goods (eating foods) also includes making use of services such as banking and insurance

Question 5

What are needs?

Answer 5

things essential for us to stay alive

Question 6

What are wants?

Answer 6

things that are luxuries which help make life more comfortable

Question 7

What are tangible goods and services?

Answer 7

things that can be touched

Question 8

What are intangible goods and services?

Answer 8

things that cannot be touched

Question 9

What are durable goods and services?

Answer 9

these last for a long time and can be used over and over again

Question 10

What are non-durable goods and services?

Answer 10

do not last long and can only be used once (food/drink)

Question 11

What are goods?

Answer 11

type of product that can be seen, touched or used (Iphone, food, car)

Question 12

What are services?

Answer 12

a non-physical product in the form of help, advice, I information or labour (a haircut, NHS, taxi)

Question 13

What is a capital good?

Answer 13

a durable good that is used in the production of goods or services (machinery, tools, computers)

Question 14

What is a consumer good?

Answer 14

goods that are ultimately consumed rather than used in the production of other goods ( microwave oven, bicycle)

Question 15

What are inputs?

Answer 15

resources such as labour, raw materials and money. things used by the organisation to make the outputs

Question 16

What are outputs?

Answer 16

the goods and services that an organisation produces (their product)

Question 17

Whats the role of business in society?

Answer 17

to provide a good or service to customers
to fulfil wants and needs
to make a profit
to develop an idea
to fill a gap in the market

Question 18

What are the four factors of production?

Answer 18

Land, Labour, Capital, Enterprise

Question 19

What is land?

Answer 19

the physical space itself, the resources on the surface, the sea, rivers and all the resources within them, such as oil and mineral deposits.

Question 20

What is labour?

Answer 20

the physical or mental effort by the workforce to make products (workforce is people who work in the business)

Question 21

What is capital?

Answer 21

the buildings, equipment, tools, vehicles and financed used in production

Question 22

What is enterprise?

Answer 22

entrepreneurs who see a business opportunity and take the necessary risks to exploit it

Question 23

What are the sectors of industry?

Answer 23

Primary, Secondary, Tertiary and Quaternary

Question 24

What is the primary sector?

Answer 24

these are extractive industries which use the earths natural resources (fishermen, farmers)

Question 25

What is the secondary sector?

Answer 25

types of businesses that are involved with making things, which go through several stages

Question 26

What is the tertiary sector?

Answer 26

the service industries (banking, nursing, insurance)

Question 27

What is the quaternary sector?

Answer 27

industries providing information services (com putting & ICT, consultancy)

Question 28

What is the private sector?

Answer 28

part of the economy that is owned and controlled by private individuals and organisations, sole traders, limited companies ( profit-driven sector)

Question 29

What is the public sector?

Answer 29

part of the economy that is owned and controlled by the state on behalf of the tax payer (schools, police, NHS)

Question 30

What is the third sector?

Answer 30

Non-profit organisation (charities and voluntary organisations)