Business Activity and Goods and Services Flashcards
Business
an organisation that produces a good or supplies a service
Good
a tangible product
Service
an intangible item i.e haircut
Resources
the materials that the business use to provide their goods or services
Land
physical land and other natural resources a business may use
Labour
skills and number of employees
Capital
the equipment used to provide goods or services, machinery or technology
Enterprise
skills employees must attain to maximise the amount of opportunities and ideas
Output
the goods and services that are sold to its customers
Consumer goods
products bought and used by consumers such as clothes
Producer goods
products that are bought to be used in the production process i.e ingredients
Durable goods
goods that last a long period of time e.g a fridge
Non-durable goods
goods that are used up e.g icecream
Personal services
services provided for the general public e.g window cleaning
Commercial services
services provided for the business e.g catering for the canteen
Interdependent nature of business
the functions of a business are interdependent meaning they are linked to each other and changes if one affects the other
Business environment
the outside factors that affect a business
State 4 factors that affect a business:
Economic change
Technological change
Environment expectation
Changes in law
Competitive environment
how a business competes with others to attract and keep customers e.g Tesco, Sainsbury’s
Dynamic environment
one that is changing e.g changes in the economy and new technology
Tertiary sector
made up of organisations that provide services e.g a travel agent
Primary Sector
made up of organisations that are at the first stage of production and use raw materials
Secondary sector
made up of organisations that are at the second stage of the production process, usually use primary resources and develop them into products
Private sector
organisations owned by private individuals that have profit objectives
Public sector
organisations owned by the government that have social objectives e.g NHS or state schools
Difference between a need and a want (give examples)
A need is something you can’t live without e.g water/food
A want is something you can live without e.g jewellery/ holidays
