Role of Business in Society Flashcards

Exam Revision

1
Q

Command Question:

Describe the main role of business in society? (2)

A

To create wealth for society by adding value. This means adding or changing something to a resource that increases the price which can be charged to the customer

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2
Q

Give 4 aims of business (4)

A

Provide employment

Increase individuals personal wealth

Create competition needed for low prices and efficiency

Support worthy causes e.g. Charities

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3
Q

What are the 4 sectors of industry? (4)

A

Primary
Secondary
Tertiary
Quaternary

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4
Q

Describe a primary industry

A

They are involved in exploiting natural resources from the land, sea and air

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5
Q

Describe a secondary industry (2)

A

They include all the manufacturing industries and construction. For example building houses and bridges and hospitals and schools

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6
Q

Describe a tertiary industry (2)

A

They do things for us, and include things such as bus travel, restaurants and holiday companies

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7
Q

Describe a quaternary industry (2)

A

These are referred to as the knowledge based part of the economy. They are a subset of the tertiary industries and include ICT, education, consultation and research and development

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8
Q

Why have there been changes in the sectors? And what are these changes? (2)

A

More machinery, as well as cheaper labour costs abroad has lead to a decrease in primary and secondary industries
There has been growth in the tertiary and quaternary sectors as retail, ICT and medical sciences are increasing important for the economy

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9
Q

Name the 3 sectors of the economy (3)

A

Private sector
Public sector
Third sector

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10
Q

Describe the private sector (2)

A

This is made up of profit making businesses

These are set up by private individuals whose main aim is to make a profit

They can be multinationals, public limited companies or private limited companies

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11
Q

Describe the public sector (3)

A

This is made up of organisations set up by the government to provide a service, either locally or nationally

These services include things which are thought to be of benefit to society such as education and health

It provides services which cannot be or are too expensive to be provided by the private sector

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12
Q

Describe the third sector (3)

A

This is made up of charities, voluntary groups, clubs and associations

It exists to benefit individuals in society or members of that organisation

It exists to provide a service which the private and public sector would not do well

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13
Q

Summarise the private sector. (4)

A

Controlled by a board of directors

Owned by shareholders

Limited liability

Financed by shares

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14
Q

Summarise the public sector. (4)

A

Government owned

Financed by taxes

Controlled by government appointed managers

Run by a board of trustees/ elected officials

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15
Q

Summarise the third sector. (3)

A

Controlled by trustees

Financed through donations

Not owned by trustees can be liable

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