role of business Flashcards
What is value adding?
when something is done to a product/s to make it better or a new product therefore adding value
What is a business?
the organised effort of individuals to produce and sell, for profit, the products (goods and services) that satisfy individuals’ needs and wants
What is the other roles of businesses?
improve quality of life, create profit and wealth, have employment for people to have incomes, becoming entrepreneurship through risk, innovation, and for consumers to have choice
What is the importance of business?
Businesses contribute to the economy in a range of ways, and also determines our standard of living
what is the main role of business?
The role of a business is to satisfy the needs and wants of humans
how does quality of life contribute to the role of business?
businesses offer a vast array of products that improve our standard of living
how does profit contribute to the role of business?
this is the reward
how does employment contribute to the role of business?
businesses provide employment to people in their local community
how does wealth contribute to the role of business?
business activity results in higher levels of economic growth and wealth
how does incomes contribute to the role of business?
business provides income to business owners/shareholders and employees
how does entrepreneurship and risk contribute to the role of business?
businesses provide individuals with the opportunity to turn their ideas and passions into a livelihood
how does innovation contribute to the role of business?
through research and development, existing products are improved and new products are created to adapt to social change
how does choice contribute to the role of business?
consumers have freedom of choice and the opportunity to purchase products at competitive prices
define production
refers to those activities undertaken by the business that combine the resources to create products that satisfy customers’ needs and wants
