Section One - What Is A Business Flashcards
1
Q
What is a business?
A
A business is an organisation that exists to provide goods and services on a commercial basis to customers.
2
Q
Define goods.
A
Goods are physical or tangible products: e.g. consumer electronics, industrial components, cars
3
Q
What are services?
A
Services are intangible products: e.g. insurance, dental services, cleaning
4
Q
Why do businesses exist?
A
- primarily to create profit
- to provide goods and services
- to develop a good idea (enterprise)
- to provide help and support for others (e.g. charities)
5
Q
How do businesses play a key role in wider society?
A
- Create and sustain employment & develop the skills of people
- Drive innovation through research & development (R&D) and new products
- Contribute to the infrastructure of the country
- Pay taxes on profits earned & collect taxes on behalf of government
- Create wealth by providing returns on investment
