Purpose Of Business Activity Flashcards
What purpose do businesses serve
Goods, physical product
Services, non physical actions
What are “Needs”
What a person requires to survive such as water, and clothes
What are “Wants”
Products that will make us happy, a desire for it, would not need these to survive, e.g jewellery, cars, electronic devices
Why do businesses set up?
When business see a gap in the market and earn a profit, have a passion for the market
What are Opportunity costs
The next best alternative given up by choosing another item
What is scarcity
The lack of sufficient products to fulfil the total wants of the population
Factors of production definition
These are those resources needed to produce goods or services
- labour
- capital
- enterprise
- land
Added value and examples
an improvement or addition to something that makes a product worth more
New Packaging
Sustainable packaging
New colour
New features
