1.1 What Is A Business? Flashcards
Goods
Physical products produced and sold to customers, such as laptops, books, contact lenses, perfumes and children’s toys
Needs
Basic necessities that a person must have to survive, including food, water, warmth, shelter and clothing
Primary Sector
Refers to businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oil exploration and forestry
Production
The process of creating goods and/or services, adding value in the process
Quaternary Sector
A sub-category of the tertiary sector, where businesses are involved in intellectual and knowledge-based activities that generate and share information, such as research organization
Adding value
The practice of producing a good or service that is worth more than the cost of the resources used in the production process
Businesses
Organizations involved in the production of goods and/or the provision of services
Consumers
The people or organizations that actually use a product
Customer
The people or organization that buy the product
Entrepreneurs
The people who manage, organize and plan the resources needed for business activity in pursuit of organizational objectives. They are risk takers who exploit business opportunities in return for profits.
Entrepreneurship
Refers to the collective knowledge, skills and experiences of entrepreneurs
Secondary Sector
Refers to businesses concerned with the construction and manufacturing of products
Services
Intangible products sold to customers, such as the services provided by airlines, restaurants, cinemas, banks, health and beauty spas, schools and hospitals
Tertiary Sector
Refers to businesses involved with the provision of services to customers
Wants
People’s desires, i.e. the things they would like to have, such as new clothes, smartphones, overseas holidays and jewelry
