Business 1.1

Question 1

Adding value

Answer 1

the process of producing a particular good or service that is worth more than the cost of resources used to produce it.

Question 2

Business

Answer 2

A decision-making organization established to produce goods and/or provide services.

Question 3

Consumers

Answer 3

The individuals or organizations that actually use a product.

Question 4

Customers

Answer 4

The individuals or organizations that purchase a product.

Question 4

Entrepreneurs

Answer 4

The individuals who take risks in overseeing a business organization or business venture, usually in pursuit of profit.

Question 5

Entrepreneurship

Answer 5

The knowledge, skills and experiences of individuals who have the capability to manage the overall production process.

Question 6

Factors of production

Answer 6

The collective term for the resources used in the production process, i.e. land, labour, capital and entrepreneurship.

Question 7

Finance and accounts

Answer 7

Function of an organization responsible for ensuring that the business has sufficient funds in order to conduct its daily operations.

Question 8

Human resources (HR)

Answer 8

The business function that handles all aspects relate to the workforce, involving all aspects of a firm’s operations related to staff (personnel) within an organization.

Question 9

Goods

Answer 9

These are physical (tangible) products, such as cars, clothes, flowers, food, furniture, smartphones, and toys.

Question 10

Marketing

Answer 10

Business function of identifying the needs and wants of customers so that the organization can provide goods and services to meet these requirements and desires, usually in a profitable way.

Question 11

Needs

Answer 11

The basic necessities that an individual must have in order to survive, such as food, water, and shelter.

Question 12

Operations (or operations management)

Answer 12

The business function referring to the process of making goods and providing services from the available resources of a business to meet the needs and wants of its customers.

Question 13

Primary sector

Answer 13

Business activity involved with the extraction of natural resources, e.g. fishing, mining and agriculture.

Question 14

Production

Answer 14

The process of creating goods and/or services using the factors of production available to the business.

Question 15

Quaternary sector

Answer 15

Business activity involving the creation or sharing of knowledge and information.

Question 16

Secondary sector

Answer 16

Business activity involved with the manufacturing or construction of finished products.

Question 17

Services

Answer 17

Intangible products, such as haircuts, tourism, public transport, banking, insurance education, and healthcare.

Question 18

Tertiary sector

Answer 18

Business activity that involves providing services to customers, i.e. consumers and business clients.

Question 19

Value added

Answer 19

The numerical difference between the cost of factor inputs in the production process and the price that the final output is sold for.