LO2- Enterpreneurship Flashcards
What are needs?
Essential for survival (e.g., food, shelter, clothing)
Needs are fundamental requirements for human life.
What are wants?
Desires beyond basic survival (e.g., luxury items, gadgets)
Wants represent personal preferences and aspirations.
What is scarcity?
Occurs when demand exceeds the supply of resources
Scarcity forces choices on how to allocate limited resources.
What are goods?
Tangible, physical items (e.g., clothing, food, electronics)
Goods can be seen and touched.
What are consumer goods?
Goods for personal use (e.g., clothes, food)
These are items purchased for consumption by individuals.
What are capital goods?
Used to produce other goods (e.g., machinery)
Capital goods are essential for production processes.
What are durable goods?
Long-lasting items (e.g., cars, furniture)
Durable goods are designed to last over time.
What are non-durable goods?
Short-lived items (e.g., food, disposable products)
Non-durable goods are consumed or used quickly.
What are services?
Intangible and cannot be stored or owned (e.g., healthcare, entertainment)
Services are actions performed for others.
What are personal services?
For individual needs (e.g., haircuts, education)
Personal services cater to individual consumers.
What are business services?
For business operations (e.g., consulting, IT)
Business services support organizational functions.
What are public services?
Provided by the government (e.g., law enforcement, transportation)
Public services aim to benefit society as a whole.
What is the main difference in tangibility between goods and services?
Goods are physical; services are intangible
This distinction affects how they are perceived and consumed.
What is the difference in perishability between goods and services?
Goods can be stored; services are consumed immediately
This affects inventory and management strategies.
What is the difference in ownership between goods and services?
Goods transfer ownership; services provide access, not ownership
This impacts consumer rights and usage.
How do the production and consumption processes differ between goods and services?
Goods are produced, stored, and then consumed; services are produced and consumed simultaneously
This affects supply chain dynamics.
How is quality measured differently between goods and services?
Goods have standardized quality; services’ quality can vary
Quality assessment is crucial for service industries.
