1.1 Introduction to BM

Question 1

Business

Answer 1

A business is any organisation that uses resources (factors of production) to meet the needs and wants of customers by providing a product in a profitable way.

Question 2

Customer Needs

Answer 2

Things needed to survive

Question 3

Customer Wants

Answer 3

Things we desire

Question 4

Inputs (resources)

Answer 4

Land: natural resources
Labour: workers, intellectual or physical efforts
Capital: man-made goods used to produce and finance needed to start up a business/ eg. Machinery
Entrepreneurship:individuals who combine the resources (other 3) to make the business work/ risk-takers, driven, organised, leaders

Question 5

Outputs (products)

Answer 5

Good: tangible (non-durable good: lasts less than a year)
Service: non tangible

Question 6

Economic Sectors

Answer 6

Primary: businesses that work with the land (farms)
Secondary: manufacturers (BMW, Jeep)
Tertiary: businesses that provide services (IBS, Red Cross)
Quaternary: businesses that deal in information/technology (new apps)