Role of business Flashcards
What is a Business?
The organized effort of individuals to produce and sell for a profit that satisfies individual’s needs and wants.
What is a Product?
The end result of production can be a good or a service
What is the difference between Goods and Services?
Goods are Tangible products we can see, feel, touch and weigh while Services are intangible products that we cannot see, feel, touch or weigh. Activities that are done for you by others.
What is an example of a Tangible product?
Food, equipment, clothes
What is an example of an intangible product?
Activities that are done for you by others. Example: Getting your makeup/hair done, Uber driver
Why do businesses need Goods and Services?
All businesses provide goods and services to consumers to satisfy their needs and wants
What is a profit?
The return or reward that business owners receive for producing products consumers need and want
Why is it essential for a business to earn profit?
It is essential for a business to meet its day-to-day expenses’ key consideration for long-term survival
Who earns an income?
Businesses provide income for business owners, shareholders and employees
What is a dividend
Income shareholders in private/public companies receive
Why is it important for Businesses that consumers have a choice?
It drives competition in the market, in terms of prices and new inventions/innovations
What is the difference between Invention and innovation?
Invention is the creation of a new product, process, or idea that did not exist before. Innovation is the process of improving or creating new products, services, or processes that add value.
What is innovation?
Through research and development products are improved & created
Who is an Entrepreneur?
Someone who organises a business venture and assumes the monetary risk for it in the hope of making a profit.
What do businesses provide individuals with the opportunity to do?
Businesses provide individuals with the opportunity to turn their ideas and passions into a livelihood
What percentage of private sector jobs do businesses provide?
Businesses provide around 80% of private sector jobs.
How do businesses contribute to the economy?
Businesses provide jobs and money to employees who spend this money on the economy.
What are the results of businesses providing jobs and money to employees?
This leads to higher levels of economic growth and wealth, more production of goods, and more employment.
What do businesses offer that improves our standard of living?
Businesses offer a vast array of products that improve our standard of living.
