CHAPTER 1 - What is a business?

Question 1

Business definition

Answer 1

A business provides goods and services which meet consumers wants and needs. They do this because they believe they can make a profit

Question 2

PRIVATE SECTOR ORGANISATION

Answer 2

The objective of a private sector organisation is to make a profit for the owners. e.g Coca - Cola, Milka, BMW , Tesco

Question 3

PUBLIC SECTOR ORGANISATION

Answer 3

Some goods and services are owned by the government. These are public sector organisations. They do NOT aim to make a profit, they aim to provide a service. e.g Healthcare, Postal Services, Education, Fire Service, Police, Ambulance, etc.

Question 4

NOT - FOR - PROFIT ORGANISATION

Answer 4

These have various objectives:

• to raise money
• market themselves
• minimise costs
  e. g clubs, charities, pressure groups, societies

Question 5

Producer products

Answer 5

Products sold by one business to another business

e.g industrial cleaning, banking, tools, market research, delivery van…

Question 6

Consumer products

Answer 6

Products sold by a business to ordinary people

e.g healthcare, air travel, handbag, magazine, office furniture, crisps…

Question 7

Stakeholders

Answer 7

Anyone with an interest in the company

Question 8

General stakeholders

Answer 8

• owners
• managers
• employee
• customers
• financiers
• government
• local community
• suppliers