UB: role of businesses in society

Question 1

what is a business?

Answer 1

an organisation that is formed to provide goods and services

Question 2

what is a good?

Answer 2

goods are tangible items that can be seen and touched
for example cars and washing machines

Question 3

what is a service?

Answer 3

a service is something that is done for others and is intangible, meaning it cannot be seen or touched after it has been provided
for example taxi drivers and cleaners

Question 4

what is a durable good?

Answer 4

something that will last for a long period of time without becoming damaged
for example fridges and computers

Question 5

what is a non-durable good?

Answer 5

something that does not last for a long period of time and is designed for short-term use or consumption
for example meals and newspapers

Question 6

what is a consumer good?

Answer 6

goods and services that are consumed by individual people to satisfy their needs and wants
for example food and CD’s

Question 7

what is a capital good?

Answer 7

goods and services that are consumed by businesses so that they can provide other goods and services
for example robotics and tools

Question 8

what is a consumer?

Answer 8

a person or organisation that purchases and uses goods or services

Question 9

what is the production process made up of?

Answer 9

the production process is made up of three stages
1. INPUT: gathering necessary resources for production
2. PROCESS: using raw materials to make goods and services
3. OUTPUT: the finished good or service ready for the consumer

Question 10

what are the four factors of production?

Answer 10

• land
• labour
• capital
• enterprise

Question 11

describe land

Answer 11

land refers to all the natural resources used in production, including land itself, as well as any minerals, water, forests, or other resources that are found in or on the land

Question 12

describe labour

Answer 12

labour is the physical and mental effort exerted by individuals in the production process (aka human resources)

Question 13

describe capital

Answer 13

capital refers to the physical assets or man-made resources used in production for example machinery, tools and any other tangible goods that are used to produce other goods and services

Question 14

describe enterprise

Answer 14

enterprise covers all of the ideas for goods and services a business has and the organisation of resources undertaken by it in order to make these ideas turn into real goods and services

Question 15

what are needs?

Answer 15

needs are the basic goods and services that are crucial for survival
for example food water and shelter

Question 16

what are wants?

Answer 16

wants are goods and services that we do not need to survive – they are only wanted by us because they would make our lives easier or provide pleasure
for example phones and jewellery

Question 17

what is consumption?

Answer 17

the process of consumers creating or buying and then using up goods and services to satisfy their needs and wants

Question 18

what are the three sectors of industry?

Answer 18

• primary
• secondary
• tertiary

Question 19

primary

Answer 19

the primary sector of industry is involved with the extraction of raw materials or natural resources from the land
for example farming and fishing

Question 20

secondary

Answer 20

the secondary sector of industry is involved with manufacturing
this involves taking raw materials from the primary sector and converting them into new products
for example manufacturers and food production

Question 21

tertiary

Answer 21

the tertiary sector of industry is involved with providing a service
for example hairdressers and cinemas

Question 22

what are the three sectors of economy?

Answer 22

• public
• private
• third

Question 23

what are the types of organisations found in the private sector?

Answer 23

• sole trader
• partnership
• private limited company

Question 24

what is a sole trader organisation?

Answer 24

a business owned and controlled by one person

Question 25

what is a partnership organisation?

Answer 25

a business owned and controlled by 2 to 20 people

Question 26

what is a private limited company?

Answer 26

abusiness that sells shares privately to invited members

Question 27

what are the types of organisations found in the public sector?

Answer 27

• national government
• local government

Question 28

what are the primary aims of private sector organisations?

Answer 28

• to survive
• to make a profit

Question 29

what are the primary aims of public sector organisations?

Answer 29

to provide a service to the public

Question 30

how are public sector organisations funded?

Answer 30

taxes

Question 31

who owns public sector organisations?

Answer 31

ownded and controlled by the government

Question 32

what are the types of organisations found in the third sector?

Answer 32

• charities
• voluntary organisations
• social enterprises

Question 33

why are third sector organisations set up?

Answer 33

to help a cause or provide a service to members

Question 34

what are the main objectives of a third sector organisation?

Answer 34

• to raise money for good causes
• to raise awareness to good causes

Question 35

what are examples of third sector organisations?

Answer 35

• oxfam
• the big issue

Question 36

what are charities?

Answer 36

abusiness set up to raise awareness or funds for a cause

Question 37

what are social enterprises?

Answer 37

a business that aims to help a social cause