role of business

Question 1

Goods vs services. Can they be linked?

Answer 1

Good- tangible
Service- intangible

Goods and services ca be linked to each other. For example buying a car (good) comes with inevitable services to maintain good health of the car

Question 2

Product diffraction and service diffraction.

Answer 2

products can differ
-colours (frank greens can differ in colour)
-features
-brands (milk and bread can differ with their brands)

services can differ in
-time spent
-level of experience/ expertise, -demand
-qualification

Question 3

Key roles of a business (8)

Answer 3

Profit- return for their product/service

Innovation- provide innovations tp society

Employment- provide employment

Choice- provide choice

Entrepreneurship and risk- allow people to turn ideas into business with risk of failure

Quality of life- provide products for better quality of life

Income- provide people with an income

Wealth- results in economic growth/ wealth