Chapter 1 (What is a business?)

Question 1

Adding value

Answer 1

Producing a good or service worth more than the cost of the resources used in the production process

Question 2

Businesses

Answer 2

Organizations involved in the production of goods or the provision of services

Question 3

Chain of production

Answer 3

The stages that a good or service goes through to get to the consumer

Question 4

Consumers

Answer 4

The people or organizations that actually use the product.

Question 5

Customers

Answer 5

The people or organizations that buy the product (not necessarily use it tho)

Question 6

Entrepreneurs

Answer 6

The people who plans, organizes, and manages the business (risk takers)

Question 7

Entrepreneurship

Answer 7

The collective knowledge, skills, and experiences of entrepreneurs

Question 8

Goods

Answer 8

Physical products produced and sold

Question 9

Needs

Answer 9

The basic necessities that a person must have to survive

Question 10

Primary sector

Answer 10

Businesses involved in the cultivation or extraction of natural resources

Question 11

Production

Answer 11

The process of creating goods or services (and adding value to something)

Question 12

Quaternary sector

Answer 12

Businesses that are involved in knowledge-based activities (a sub category of the tertiary sector)

Question 13

Secondary sector

Answer 13

Businesses involved with the construction and manufacturing of products

Question 14

Services

Answer 14

Intangible products sold to customers

Question 15

Tertiary sector

Answer 15

Businesses involved with the provision of goods and services to customers

Question 16

Wants

Answer 16

Peoples’ desires