U Roles of Business in Society Flashcards
What is the role of business in society?
To satisfy the needs and wants of consumers by selling goods and services.
What are needs?
Things that a person needs to survive, eg food, water, shelter
What are wants?
Products that make life more enjoyable, convenient. Eg, designer clothes.
What are goods?
Tangible products that one can touch. Eg, phone.
What are services
Non tangible products that can be purchased and experienced. Eg, holidays.
What are the sectors of industry?
Primary sector
Secondary sector
Tertiary sector
Quaternary sector
Describe primary sector
Businesses that are involved with exploiting or extracting natural raw materials. Eg, farming, fishing, forestry
These products are then often sold to businesses in the secondary sector
Describe secondary sector
Business that are involved with manufacturing or construction. Adding value to raw materials by turning them into valuable goods that consumers can use. Eg, car manufacturing.
Describe tertiary sector
Businesses involved with providing a service. Eg, shops, banks.
Describe quaternary sector
Businesses that provide knowledge and technology based services. Eg, consultancy, ICT and computing.
What are the sectors of the economy
Private sector
Public sector
Third sector
Describe private sector
Businesses who’s main objective is to make a profit. Eg, sole traders, partnerships, private limited companies, public limited companies, franchises.
Describe public sector
Businesses who are owned by the government, financed through taxes and who’s main purpose is to provide a service to the public. Eg, public corporation, central government, local government
Describe third sector
Businesses who are non profit making and are set up to support specific causes. Eg, charity, social enterprise.
