The Role Of Organisations

Question 1

What are companies / buisinesses

Answer 1

Organisations that produce buy and sell goods and provide services to satisfy customer’s needs and wants ( see Maslow’s hierarchy of needs )

Question 2

What are the factors of production ?

Answer 2

Land : raw materials ,.. anything that comes from the land
Labour : people transforming ressources into goods or services available for purchase
Capital : machinery tools and buildings used to produce goods ( g) and services ( s)
Entrepreneurship : person whocombines the other labors to earn a profit

Question 3

What are the different sectors of industry ?

Answer 3

Primary sector : extracts and harvests products from the earth such as raw materials and basic food
Secondary sector : produces finished goods from products extracted in the primary sector
Tertiary sector : ( aka service industry ) sell goods produced by secondary sector

Question 4

What are the different types of organization ?

Answer 4

Private sector :owned managed controlled by individuals . To make profit and grow ( innovate , .. )
Public sector : government owned at least partially provide public services no financial objectives important for a nation’s healthy economy
Third sector : owned and run by trustees social role and funded by donations and gifts

Question 5

What are a buisiness main objectives ?

Answer 5

Survival , profit , provision of a service , social responsibility , customer satisfaction ,market share , retaining employees