1.1 The purpose and nature of business Flashcards
Define Goods
A good is a physical product, such as a car.
Define service
A service is an intangible product (that is, you cannot touch it), such as financial advice or a bus journey.
Define customer
A customer is someone who buys a product from a business.
Define consumer
A consumer is someone who uses goods and services produced by businesses.
When is a business successful?
A business is successful if it can meet the needs and wants of customers effectively.
Define business
A business is an organisation that produces a good or supplies a service.
Entrepreneur?
An entrepreneur is someone who is willing to take the risks involved in starting a new business.
Entrepreneurship?
**Entrepreneurship refers to the ability to be an entrepreneur – to take risks to develop a business idea.
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Social enterprise
A social enterprise is a business that is set up to help society rather than to make a profit.
Primary sector
**The primary sector refers to organisations that extract the earth’s natural resources.
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Secondary sector
**The secondary sector refers to organisations that use raw materials to manufacture goods or construct items.
Tertiary sector?
**The tertiary sector refers to organisations that provide services to consumers or other organisations.
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Interest rates?
Interest rates refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
Inflation?
**Inflation refers to the rate at which prices are increasing. For example, if inflation is 2 per cent, prices are generally growing by 2 per cent that year.
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Gross Domestic Product?
**Gross Domestic Product (GDP) measures all the income earned in a country’s economy in a year.
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