1.1 what is a business

Question 1

what is a Good?

Answer 1

Tangible product that can be seen or taken home – iPhone, vegetables

Question 1

what is a Service?

Answer 1

Intangible product that the consumer does not physically take home– yoga class, medical

Question 2

what is a business and what does it do?

Answer 2

Creates a product
Provides a service
Extracts raw materials from the earth

Question 3

what is the role of a business?

Answer 3

The role of a business is to meet the needs and wants of individuals or organisations

Question 4

what are some resources needed in production?

Answer 4

inputs and outputs

Question 5

what are the input resources needed in production?

Answer 5

Human, physical, financial, enterprise

Question 6

what are the outputs in production?

Answer 6

goods and services

Question 7

what are some inputs (factors in production)?

Answer 7

raw materials, capital, Human Resources, natural resources

Question 8

what is human in resources needed in production?

Answer 8

businesses, even highly automated ones needed human input. Some might only need 1, others require many individuals with different skill sets
Eg – car manufacturing/Restaurant

Question 9

what is financial in resources needed in production?

Answer 9

businesses need finance/capital to make a product or service. Whether it is a loan, savings, overdraft, all businesses need finance to function

Question 10

what is physical in resources needed in production?

Answer 10

quantity and quality of physical materials. machinery and space is required to make a product or service. Even an online business needs a computer (machinery)

Question 11

what is enterprise in resources needed in production?

Answer 11

This is the business idea and the will to see all the other areas become a functioning and thriving business.

Question 12

what are the 4 sectors of business activity?

Answer 12

primary, secondary, tertiary, quaternary

Question 13

which 2 of the 4 sectors provide goods?

Answer 13

primary and secondary

Question 14

which 2 of the 4 sectors provide services?

Answer 14

tertiary and quaternary

Question 15

what involves the primary sector?

Answer 15

Involves acquiring raw materials. For example, metals and coal have to be mined, oil drilled from the ground, fruits farmed and animals raised.

Question 16

what involves the secondary sector?

Answer 16

manufactures and assembles products. transform raw materials into finished goods. For example, cookies, cars, cell phones, etc (made into a wproduct)

Question 17

what involves the tertiary sector?

Answer 17

provides services to customers, which sometimes includes tangible goods. Examples include banks, education, transportation, insurance, etc

Question 18

what involves the quaternary sector?

Answer 18

provides services that are focused on knowledge. This includes IT, research and development, consultancy, the media, etc

Question 19

what is an entrepreneur?

Answer 19

An individual who develops and runs a business, assuming all the risks and rewards of that given business.

Question 20

what are the characteristics of an entrepreneur?

Answer 20

Able to see opportunities where others are not.
Someone who has the skills and initiative necessary to take good new ideas to market
Can make the right decisions that lead to profitability.

Question 21

what are the 7 opportunities to start a business?

Answer 21

rewards, necessity, sharing an idea, finding a gap, interest, challenge, independence

Question 22

what is rewards in opportunities to start a business?

Answer 22

Getting to keep all the profit. Also the possibility of risk however

Question 23

what is necessity in opportunities to start a business?

Answer 23

The need for a salary may lead to some starting a new business

Question 24

what is sharing an idea in opportunities to start a business?

Answer 24

If you really believe in something you may want to share it with others