1.1 Flashcards
What does business mean?
A business is an organization where people work together.
What does product mean?
A product is any item or service you sell to serve a customer’s need or want. They can be physical or virtual. Physical products include durable goods (like cars, furniture, and computers) and nondurable goods (like food and beverages).
What does service mean?
Service has many uses, all having to do with serving someone, or doing something for them. In a restaurant the waiter provides service, and if you do something nice for someone, you’ve done him a good service.
What are the four factor productions and what do they mean?
Land, labor, capital, and entrepreneurship. Land refers to natural resources, while labor is the work that goes into production. Capital is the tools and buildings used to produce things, and entrepreneurship is the know-how of putting it all together.
What is primary sector?
The primary sector includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, deposits.
What is secondary sector?
The secondary sector is the sector of the economy that revolves around manufacturing
What is tertiary sector?
The sector of an economy concerned with or relating to tertiary industry.
