1.1 The Purpose And Nature Of Business Flashcards
Needs
Some goods that are essential
-water
-food
-shelter
Wants
Some goods (as consumers) we want
-new car
-new phone
-gold watch
What is a business?
Is an organistation which trades to make money
What is a product?
Is anything that is capable of satisfying customer needs,it is tangible and can be touched
What is a service?
Is an act that a business person carries out for you in exchange for money but you cannot touch it (intangible)
-dental treatment
-hairdresser
-gardening
Factors of production
Land-somewhere to produce the goods
Labour-people to work in the business
Capital-money to get the business started
Enterprise-this is tue drive/motivation from the owners to start a business
Opportunity cost
A problem which need to be solved with a risk
Reasons to start a business (1)
To produce goods
Reasons to start a business (2)
To supply a service
Reasons to start a business (3)
To distribute products
Reasons to start a business (4)
To fulfil a business opportunity
Reasons to start a business (5)
Providing a good or service to benefit others-social enterprise
Primary sectors
The primary sector extracts raw materials from the planet
-mining
-lumberjacks
Secondary sector
The secondary sector are goods manufactured from raw materials into finished goods
-plastic,metals made into cars
-eggs ect made into a cake
Tertiary sector
The tertiary sector is all the support services for business
-shops
-retail
-banking
