1.1 What is a business?

Question 1

Businesses

Answer 1

Businesses are organizations involved in the production of
goods and/or the provision of services.

Question 2

Consumers

Answer 2

Consumers are the people or organizations that actually use a
product.

Question 3

Customers

Answer 3

Customers are the people or organizations that buy the product.

Question 4

Entrepreneur (1)

Answer 4

An entrepreneur is an individual who plans, organizes, and
manages a business, taking on financial risks in doing so.

Question 5

Entrepreneur (2)

Answer 5

Entrepreneurs are 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.

Question 6

Entrepreneurship

Answer 6

Entrepreneurship is the management, organization, and
planning of the other three factors of production. The success or failure of a business rests on the talents and decisions of the entrepreneur.

Question 7

Goods

Answer 7

Goods are physical products produced and sold to customers,
such as laptops, books, contact lenses, perfumes and children’s
toys.

Question 8

Needs

Answer 8

Needs are the basic necessities that a person must have to
survive, including food, water, warmth, shelter and clothing.

Question 9

Primary sector

Answer 9

Primary sector refers to businesses involved in the cultivation or extraction of natural resources, such as farming, mining,
quarrying, fishing, oil exploration and forestry.

Question 10

Production

Answer 10

Production is the process of creating goods and/or services,
adding value in the process.

Question 11

Quaternary sector

Answer 11

Quaternary sector is 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 organizations.

Question 12

Secondary sector

Answer 12

Secondary sector refers to businesses concerned with the
construction and manufacturing of products.

Question 13

Services

Answer 13

Services are intangible products sold to customers, such as
the services provided by airlines, restaurants, cinemas, banks,
health and beauty spas, schools and hospitals.

Question 14

Tertiary sector

Answer 14

Tertiary sector refers to businesses involved with the provision
of services to customers.

Question 15

Wants

Answer 15

Wants are people’s desires, i.e. the things they would like to
have, such as new clothes, smartphones, overseas holidays and
jewellery.