UB T1 Role Of Business In Society

Question 1

Why do businesses exist?

Answer 1

To satisfy needs (essentials) and wants (luxury) of customers

Question 2

Sectors of industry

Answer 2

-Primary Sector
Exploiting natural resources (farming, mining)

-Secondary Sector
Manufacturing and construction. Resource -> good (car production, house building)

-Tertiary Sector
Service (banks, hotel, hospital)

-Quaternary Sector
Info & knowledge (ICT, R&D, consultancy)

Question 3

Sectors of Economy

Answer 3

-Private Sector
Profit (Tesco, Ford)

-Public Sector
Gov (Hospital, Police)

-Third Sector
Help others (SSPCA, Scouts)

Question 4

Adding value

Answer 4

Businesses will ADD VALUE to products as they move through sectors of industry.

Primary - coffee bean -> 5p per cup
Secondary - Roasting -> 25p per cup
Tertiary - coffee shop -> £2.50 per cup