Understanding Buisness Flashcards
What are goods?
Products that you can see and touch
What are services
?
An activity that is done for u by someone else eg a haircut, tutoring
What is a durable good?
Lasts for a long time can be used more than once, eg iPad, book, pen
What is a non durable good?
Will not last, only used once e.g. Sand which, notebook
Why do businesses exist?
To provide goods +services to satisfy consumers wants and needs
What are the 3 sectors of industry
Primary, secondary and tertiary sector (voulntary)
What is the primary sector?
Exploit natural resources, e.g. Farming, mining, fishing
What is secondary sector?
Manufacture, convert natural resources into something else e.g. Car manufacture
What is the Tertiary sector ?
Provision of a service, e.g. Hairdressing, banking
What are the factors of production?
The ingredients required to start a business; land, labour, capital, enterprise
What is land?
All natural resources e.g. Oil, wood
What is labour?
All human effort e.g. Dentist
What is capital?
All man made resources e.g. machinery
Enterprise ?
The person who develops the business idea e.g. Lord Sugar
What are the sectors of the UK Economy?
Private Sector, Public Sector, Voluntary Sector
