Roles Of Business In A Society -UB Flashcards
What are needs?
Needs are the 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 don’t need to survive. These include luxuries such as mobile phones or holidays.
For a business to survive what must they satisfy?
Customers needs and wants
How can the business satisfy the customers needs and wants?
By providing them with goods and services
What are goods?
Goods are products that you can see and touch (tangible) such as laptops, clothes or food.
What are services?
Services are products that you cannot hold or touch (intangible) such as public transport, a haircut or a visit to the cinema.
What are the factors of production?
Land, labour capital, enterprise
What does the terms land mean?
The natural resources used to provide a good or service such as water, a plot of land, fields, fish or coal
What does the terms labour mean?
The workforce used to produce a product or provide a service such as builders, teachers or plumbers
What does the terms capital mean?
The man-made resources used to produce a product or provide a service such as machinery, tools, money or delivery trucks
What does the terms enterprise mean?
The idea the owner had to create the business. How the land, labour and capital is used to make a good or provide a service
What are the 3 main. Sectors of industry?
Primary, secondary, tertiary
What is the primary sector?
The primary sector of industry is concerned with the extraction of raw materials or natural resources from the land.
What some examples of businesses that operate in the primary sector?
farming, mining, fishing or oil production.
What is the secondary sector?
The secondary sector of industry is concerned with
manufacturing. This would involve taking the raw materials from the primary sector and converting them into new products.
What are some examples of businesses that operate in the secondary sector?
car manufacturers, food production or building companies.
What is the tertiary sector?
The tertiary sector of industry is concerned with providing a service. Services are activities that are done by people or businesses for customers.
What are some examples of businesses that operate in the tertiary sector?
hairdressers, banks, supermarkets or cinemas.
What are the sectors of economy?
The economy is divided into three sectors:
private
public
third
Private sector -
The type of organisations that would be in the private sector are:
sole trader
partnership
private limited company
Who owns a private sector company, and what is its aims?
This is the part of the economy that is owned and controlled by a private firm or an individual Their main aim is to make a profit
Public sector -
The type of organisations that would be in the public sector are:
national government
local government
Who owns a public sector company, and what is its aims?
Public sector organisations are owned and controlled by the government. Their objective is to provide a service to the public and they are funded by taxes. Public sector organisations function in areas such as health, education, housing and social work.
Third sector-
The type of organisations that would be in the third sector are:
charities
voluntary organisations
social enterprises
