1.1 - Role of Business in Society Flashcards
What is a business?
A business is an organization that makes, buys, or sells goods or provides a service, aiming to satisfy consumer needs and wants.
What are consumer needs?
Needs are basic requirements essential for survival, such as food, water, clothing, shelter, and warmth.
What are consumer wants?
Wants are non-essential items that improve quality of life, such as mobile phones or holidays.
How can a business survive?
By satisfying the needs and wants of consumers through the provision of goods and services.
What are goods?
Goods are tangible products that you can see and touch, such as laptops, clothes, or food.
What are services?
Services are intangible products that cannot be touched, such as public transport, haircuts, or cinema visits.
What are the factors of production?
They are the resources needed by a business to provide goods and services, typically including land, labor, capital, and entrepreneurship.
What are the four main sectors of industry?
Primary, Secondary, Tertiary, and Quaternary.
What is the Primary sector of industry concerned with?
The extraction of raw materials or natural resources from the land, such as farming, mining, fishing, or oil production.
Give an example of a business in the Primary sector.
Examples include agriculture (farming), oil extraction, mining, and fishing.
What does the Secondary sector involve?
Manufacturing, which involves taking raw materials from the primary sector and converting them into new products.
Name a business that operates in the Secondary sector.
Car manufacturers, food production companies, and building firms.
What is the focus of the Tertiary sector?
Providing services to consumers and businesses, including activities done by people or businesses for consumers.
List examples of businesses in the Tertiary sector.
Hairdressers, banks, supermarkets, and cinemas.
What is the Quaternary sector?
It includes industries providing information services, such as computing, ICT, consultancy, and research and development (R&D).
How is the Quaternary sector sometimes categorized?
It is sometimes included with the Tertiary sector as they are both service sectors.
What proportion of the UK workforce is employed in the Tertiary and Quaternary sectors?
76% of the workforce.
What are the three main sectors of the economy?
Private, Public, and Third sectors.
What types of organizations operate in the Private sector?
Sole traders, partnerships, and private limited companies.
Who owns and controls Private sector organizations?
Private individuals.
What are the primary aims of Private sector businesses?
To survive and make a profit.
Give examples of Private sector businesses.
A local newsagent or a large supermarket chain.
What types of organizations are in the Public sector?
National government and local government organizations.
What is the main aim of Public sector organizations?
To provide a service to the public.
How are Public sector organizations funded?
Through taxes.
In which areas do Public sector organizations operate?
Health, education, housing, and social work.
What types of organizations are in the Third sector?
Charities, voluntary organizations, and social enterprises.
What is the primary aim of Third sector organizations?
To help a cause or provide a service to members, often by raising money and increasing awareness for good causes.
Give examples of Third sector organizations.
Oxfam, The Big Issue, and a local youth club.
