3.1.1Purpose And Nature

Question 1

What is a business?

Answer 1

It is an organisation that exists to provide goods and services

Question 2

What are goods OTP

Answer 2

• Objects
• Tangible
• Produced and consumed

Question 3

What are services AIP

Answer 3

• Activities
• Intangible
• Provided by other businesses

Question 4

Examples of services

Answer 4

• Transport
• Dentist
• Dry cleaning
• WiFi
• Hair salons

Question 5

Examples of goods 🛍

Answer 5

• Food
• Clothing
• toys
• Animals pets
• Technology

Question 6

What are needs

Answer 6

Needs are goods we need to consume to survive

Question 7

What are wants

Answer 7

Wants are goods and services that we would like but are not essential to live.they are luxuries 🧁🥰🥳🍬🍪⛴

Question 8

Examples of needs

Answer 8

Shelter 🕳 Clothes👕 Food🍯 Air 🌪 Water💧

Question 9

Examples of wants

Answer 9

Technology 💻 Smart watch⌚️ Beee🐝 Pupppppppy🐶 Nintendo 🤗👾

Question 10

How to satisfy customer

Answer 10

Identify their wants and needs

Question 11

Purpose of business Please Pet Sonny Fish Dog

Answer 11

• Producing goods
• Providing a service to benefit others
• Fulfilling a business opportunity
• Distributing objects

Question 12

What is a social enterprise

Answer 12

Social enterprise is a business that does not aim to make profits but improving people’s lives

Question 13

Opportunity cost

Answer 13

Sacrificing one thing in order to achieve the other

Question 14

Characteristics of an entrepreneur

Answer 14

• Hardworking
• organised
• innovative
• risk taker
• motivated

Question 15

What are the three business sectors

Answer 15

Primary Secondary Tertiary

Question 16

Describe primary business

Answer 16

Producing raw materials which are extracted from nature🌳🌲🌵

Question 17

Describe secondary business

Answer 17

Manufacturing goods which are made from raw materials and turned into finished goods. This sector is also involved in construction 🔨

Question 18

Describe tertiary business

Answer 18

Producing services. Also include businesses involved in the distribution process

Question 19

Examples primary business

Answer 19

• Fishing
• Mining
• Oil exploration
• Farming

Question 21

Examples of secondary businesses

Answer 21

Car manufacturers 🚗 Steel Clothing maker Builder ⛑

Question 22

Tertiary business examples

Answer 22

Shops🛍 Transport 🚖 Hairdresser 💇🏽‍♀️ Baking 👨🏽‍🍳 Banks 🏦 Retail

Question 23

Factors of production

Answer 23

Land Labour Capital Enterprise

Question 24

tele factors

Answer 24

• Technology-online shopping, advertisements, interaction with customers, working from home
• Economy- tax vat, consumer spending
• Legislation- laws, e.g. rule of 10pm curfew
• Environment- the pollution and just consideration,

Question 25

what is land

Answer 25

LAND- any natural resources, non-renewable- gas, oil, coal. Renewable power such as wind/waterpower or wood. Wind turbine

Question 26

what is labor

Answer 26

LABOUR- work done by people, physical or mental effort. Builder physical effort. Architect mental effort since you have to think.

Question 27

what is capital

Answer 27

CAPITAL- machines, equipment and tools, vehicles buildings. Tools you use to produce the product

Question 28

what is enterprise

Answer 28

ENTERPRISE – the innovator, taking risks, using all the other factors of production to create products. Like they employ workers. Farmer, tractor capital, land the farm, labor driving the tractor.

Question 29

characteristics of an entrepreneur

(main ones )

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Answer 29

• hard working
• innovative
• organised
• willing to take risks
• motivated

Question 30

why might someone want to set up their own business

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Answer 30

• flexable working hours
• earn more money
• be their own boss
• gap in the market
• dissatisfaction with current job
• persue an intrest

Question 31

what does hardworking mean

Answer 31

• being commited
• not giving up
• putting your all into something you find important
• investing time
• sacraficing things in orger to complete something

Question 32

what does innovative mean

Answer 32

• being creative
• coming up with something new and unique
• original
• hasnt been done or stands out

Question 33

what does organised mean

Answer 33

• having orderly and clear idaes
• have a propper and easy to folow plan
• know what you are doing
• also an orderly work space

Question 35

why is being innovative important to an entrepreneur

Answer 35

• they are more likely to be noticed and stand out more
• people want new things all the time and that’s a good way of capturing attention

Question 40

what is willing to take risks

Answer 40

• the probability of a business being successful on its forst set up is unlikely so the risk is investing time and money.
• however the outcome is not always bad

Question 42

why is hardworking important to an entrepreneur

Answer 42

• the end result will not be as impressive
• if the good or service does get into the market place you will give the impression you are not commited
• what you put in you get out

Question 43

why is being organised important to an entrepreneur

Answer 43

• ideas won’t be presented clearly
• confusion can happen
• you ay miss a vital element
• if you are not organised you may not be able to do