1.1 Business what is a business activity Flashcards
What is business? ( Definition )
A business is a decision-making organisation that produces outputs
What is a good?
A good is a physical product
What is a service?
a non physical product
what are consumer goods?
goods and services sold to ordinary people.
what are producer goods?
Goods and services sold to other businesses
What is a need?
a need for example would be water and things that humans need to survive.
What is a want?
A want is someone’s desire and wants can be infinite while needs are finite.
What is a private enterprise?
a private enterprise is an enterprise that is owned by a individual or a group of individuals they are in the private sector of business;
What is a public enterprise?
a public enterprise is owned by the central or local government and they are in the public sector of business.
What is a social enterprise?
Their main objective is to create positive social change - NOT to
make a profit
Who is a stakeholder?
A stakeholder is any individual or
group that has an interest and/or
is affected by the operation of a
business.
Provide some examples of a stakeholder?
● Owners: The business belongs to them
● Customers: They buy goods or services from the business
● Employees: They work for the business
● Managers: They run and lead the business
● Financiers: They lend money to the business
● Suppliers: They provide materials or services to the business
● The local community: Can be benefited or affected by the business
● The government: Employment of citizens, follow the law and pay taxes
