Role of busiess in society Flashcards
What is a business?
An organisation that attempts to satisfy the needs and wants of the community by providing goods and/or services.
What are the roles of businesses?
Economic and social roles.
List the economic roles of business.
- Employ people
- Create innovative new products and services for a profit
- Improve existing products and services (adding value)
What is meant by adding value?
Improving existing products and services.
What are the eight roles of business?
- Profit
- Employment
- Incomes
- Choice
- Innovation
- Entrepreneurship and Risk
- Wealth Creation
- Quality of Life
Why is profit essential for a business?
To meet day-to-day expenses and provide a return on the owners’ financial investment.
What is a key consideration for the long-term survival of a business?
Profitability.
What key function does employment serve in business?
Provision of human resources to produce goods and services.
What does a business provide in return for employees’ services?
A form of income.
What is a primary function of business regarding consumers?
To produce goods and services to satisfy their needs and wants.
What is the significance of choice in a competitive market?
Encourages businesses to provide goods and services at the lowest possible price with the highest quality.
What is innovation in a business context?
The process of introducing a new product or improving an existing one.
What can innovation apply to in business?
- New products
- Product features
- Marketing strategies
- Production processes
Why is innovation crucial for a business?
To maintain its competitive advantage over other businesses.
Define an entreprenuer.
An individual who has developed ideas and is willing to take risks to implement them through a business.
What is wealth in the context of business?
The total value of all assets owned by a person or business.
How do businesses generate increased wealth for the community?
By making profits that are taxed by the government.
What does the government use taxation from businesses for?
- Fund essential services
- Improve educational, health, and transport facilities
- Employ emergency staff
How has business research and development contributed to quality of life?
By developing products that help consumers maintain a healthy lifestyle.
