Chapter 1 Enterprise Business activity and value added

Question 1

How can a Business be described as?

Answer 1

A business can be described as an organisation that exists to satisfy need or wants, by supplying good or Services.

Question 2

What is a Need?

Answer 2

A need is something that is essential for life.

Question 3

What are the five basic needs?

Answer 3

1. water
2. food
3. Shelter
4. Clothing
5. Medical attention

Question 4

What is a want?

Answer 4

A want is something people desire to have- wants are not essential for life. Most people have unlimited wnats

Question 5

What is a Product?

Answer 5

A product is a good or service.

Question 6

What is a Good?

Answer 6

A good is a type of product that can be seen, touched or used.

Question 7

What is a service?

Answer 7

A service is a non-physical product in the form of help, advice, information or labour. Examples: Medical care, insurance, transport, teaching.

Question 8

What are consumer goods?

Answer 8

Consumer goods are the physical and tangible goods sold to the general public. They can include durable consumer goods, such as cars and non-durable consumer goods such as food.

Question 9

What are Consumer services?

Answer 9

Consumer services are the non-tangible products sold to the general public-they include hotel accommodation, insurance services and train journeys.

Question 10

What are Capital Goods?

Answer 10

Capital goods are the physical goods used by industry to aid in the production of other goods and services: such as machines and commercial vehicles.

Question 11

What is Added value?

Answer 11

Added value means the difference between the cost of purchasing raw material and the price the finished goods are sold for.