Higher Business Management- understanding business Flashcards
What are needs?
Needs are the basic requirement that are essential for survival such as food, water clothing and shelter
What are wants?
Wants are the things we would like to have but don’t need to survive. These include luxuries such as mobile phones or holidays
What are goods?
Goods are products that you can see and touch (tangible) such as laptops, clothes or food.
What is a business?
A business is any organisation which is set up to achieve a set of objectives
What is adding value?
Adding value is the result of taking the raw materials and creating a usable product which can then be sold for a higher price than the cost of the individual parts. it can also be as a result of providing quality service.
What are services?
Services are things that are done for us. They can be described as non tangible products. some examples include banks,insurance, tourism, health and education.
what are the factors of production?
Land, Labour, Capital and Enterprise
What is Land (Factor of Production)
Land is all the natural resources such as oil, water and the land itself.
What is Labour? (Factor of production)
labour is the people needed to make the organisation work.
What is Capital? (Factor of production)
These are man made resources, capital can also be described as the money invested in an organisation. However we use it as a term to describe things like factories, machines, lorries and tools.
What is Enterprise (Factor of production)
Enterprise is the human effort and will to provide goods and services. The entrepreneur is the person who brings together all the other resources to produce the goods and services
What are the sectors of industry?
Primary, Secondary, Tertiary and Quaternary.
What is the primary sector responsible for?
The primary sector involves getting raw materials from the land or sea, like farming, fishing, mining, or oil extraction.
What is the secondary sector responsible for
The secondary sector takes raw materials from the primary sector and turns them into products through manufacturing and construction, like building houses, making clothes, processing food, or refining oil.
What is the tertiary sector of industry responsible for
The tertiary sector, or service industry, involves providing goods to consumers and offering services like retail, banking, travel, hairdressing, and education or healthcare.
