1.1 Vocab

Question 1

Business

Answer 1

A decision-making organisation, established to produce goods and/or services

Question 2

Adding Value

Answer 2

Process of producing goods and services that are worth MORE than the CTM

Question 3

Consumers

Answer 3

Individuals + organisations that actually USE the products

Question 4

Customers

Answer 4

Individuals + organisations that PURCHASE the products

Question 5

Entrepeneurship

Answer 5

The knowledge, skills and experience of the people who have the capability to manage overall production process

Question 6

Production

Answer 6

Process of creating goods/services using the factors of production available to the business

Question 7

Factors of Production

Answer 7

Collective term for the resources used in production processes

Question 8

Goods

Answer 8

Physical products (tangible)

Question 9

Services

Answer 9

Intangible products

Question 10

Needs

Answer 10

Basic necessities that an individual MUST have in order to survive

Question 11

Wants

Answer 11

DESIRES of individual customers.
- Goods and services that a client would like to have (not need)

Question 12

Value Added

Answer 12

NUMERICAL difference between the cost of factor inputs in production process + price that the final output is sold for