Chapter 1 Flashcards
Business
What is a Business?
A Business is an organisation that meets the needs and wants of customer.
What is Goods-Producing business?
Produce goods that can be seen and touched
Goods are produced with the use of machines and/or labour.
What is Service Businesses?
Provides services that cannot be seen or touched but can be experienced
Services are performed when seller interact with customers
What does CELL means?
Capital, Enterprise, Land, Labour
What is direct competition?
A business is in direct competition with another when they sell the same or similar goods and services.
What is Indirect competition?
Indirect competition is when two business sell goods and services that satisfy the same needs and wants of the customer. However, the goods and services fall under different categories.
What is a example of direct competition?
Bossini and Gordano are direct copetitiors as both are sellers of casual
What is a example of Indirect competition?
Timezone and The Rink are Indirect competitors. Both satisfy customers wants for entertainment but is a video game arcade while the others is an ice-skating rink
What is Capital?
A Capital refers to the money needed to start a business.
