The Purpose and nature of Business Flashcards
what is a product?[1]
anything capable of satisfying customer needs.
are products tangible or intangible?[1]
tangible
can products be touched?[1]
yes
what is a service?[1]
an act that a business person carries out in exchange for money
are services tangible or intangible?[1]
intangible
can a service be touched?[1]
no
what is a need?[1]
something we cannot survive without
give an example of a need.[1]
any one of these:
food
water
clothes
shelter/home
education
describe a want. [1]
something we would like to have but can survive without
give an example of a want. [1]
any one of these:
Xbox
or something unneeded
what is opportunity cost? give an example.[2]
a measure of the cost of something that is given up in order to do something else
e.g. going to a concert means you cannot afford the new shoes you wanted.
factors of production
list the 4 factors of production [4]
land
labour
capital
enterprise
factors of production
what is land in terms of business? give an example. [2]
somewhere to produce goods
e.g. farm
factors of production
what is labour in terms of business? give an example. [2]
people to work in the business
e.g. farm workers
factors of production
what is capital in terms of business? [1]
the buildings and machinery needed by the business
