Role of businesses in society Flashcards
What is a business
A business is an organisation that makes, buys or sells goods or provides a service. All businesses aim to satisfy the needs and wants of customers.
For a business to survive, it needs to satisfy the needs and wants of the customer. Businesses can satisfy needs and wants by providing goods and services to customers.
For a business to be able to provide goods and services it will need to combine a variety of resources. These are known as factors of production.
What is a ‘need’
Needs are basic requirements that are essential for survival such as food, water, clothing, shelter and warmth.
What are ‘wants’
Wants are things we would like to have but aren’t essential for survival. These include luxuries such as phones and holidays.
What are ‘goods’
Goods are products that you can see and touch (tangible) such as laptops, clothes and food.
What is a ‘service’
Services are products that you cannot hold or touch (intangible), such as public transport, a haircut or a visit to the cinema.
What is the factor of production
Land, labour, capital and enterprise.
