purpose and nature of business Flashcards
1
Q
why do businesses exist
A
- provide goods and services
- meet customer needs
- create employment
- tax for government
- enhance a countries reputation
- create wealth
2
Q
how does production work
A
input –> transform (add value) –> output
3
Q
what are the factors of production
A
- capital
- enterprise
- land
- labour
4
Q
ways to add value
A
- manufacturing the good
- customer service
- branding
- USP
- convenience
5
Q
what is adding value
A
increasing the worth of resources by modifying them
6
Q
how does the amount of added value change from business to business
A
target market
7
Q
what are the three business sectors
A
primary
secondary
tertiary
8
Q
what is the primary sector
A
extraction of raw materials
9
Q
what is the secondary sector
A
transforming or refining raw materials
10
Q
what is the tertiary sector
A
service industry
11
Q
what are the two ways of selling
A
B2B
B2C
