Progress Check 1 - Business Intro Flashcards
What is a business?
A business is a particular type of organisation – one which involves people and resources in the making of a good or the providing of a service.
What is a need?
A need is something necessary for survival. Needs are prioritised over wants.
What is a want?
A want is something you can live without; a luxury or desire which increases your standard of living. They are limited by your budget.
What is a good?
A good is a tangible (touchable) product. They can either be durable (lasts more than a year) or consumable/non-durable (consumed within a year).
What is a service?
A service is an action that is carried out for us. People buy services.
What is disposable income?
Money left over and available to spend after all monthly commitments have been paid (rent, mortgage, utility bills, tax etc.)
Examples of needs?
Food, water, clothes, shelter, electricity/fuel.
Examples of wants?
Private education, Ferrari, iPhone, fancy holiday to Lanzarote.
Examples of goods?
- Tomato - non-durable/consumable
- Laptop - durable
Examples of services?
Restaurant, MOT, teaching, Amazon package delivery.
Reasons for buying services?
- Not qualified (surgery)
- Not enough time (education)
- Not skilled (car maintenance)
- Too lazy/Convenience (Take-away/restaurant)
- Present/gift (taking someone out to dinner)
- Messy/dangerous (Window cleaning)
- Physical hindrance (Caring for the disabled)
8.Status symbol (Expensive haircut, dry-cleaned clothes)
What are the Factors Of Production?
The internal factors of a business that it has control over - Capital, Enterprise, Land, Labour.
What is Capital?
Man-made machinery/equipment (e.g tractors, ovens etc.)/Money available to finance projects
What is Enterprise?
The ideas on how best to combine the other factors of production to make a profit and achieve your aims.
What is Land?
Natural resources that a business uses e.g raw materials, plot of land, fuel, ingredients, forest, water etc.
