The role of business Flashcards
Explain what is meant by a business.
A business is an organisation that makes, buys or sells goods or provides a service. All businesses aim to satisfy consumer needs and wants.
Explain the difference between ‘needs’ and ‘wants’ giving examples of each.
Needs are the basic requirements that are essential for survival such as food, water, clothing, shelter and warmth. Wants are things we would like to have but don’t need to survive. These include luxuries such as laptop computers or TV.
Distinguish between ‘goods’ and ‘services’ giving examples of each.
Goods are products that can be seen and touched (tangible) such as cameras, sportswear or food. Services are products that cannot be seen or touched (intangible) such as a train journey, a haircut or the Internet.
Explain what is meant in business by the term ‘consumer’?
In business, a consumer is a person who uses a product and may also buy it.
