Unit 1 Flashcards
What is a business?
It is an organisation that is used to provide a good or service for customers to purchase.
What is a good and an example
they are physical tangible things which can be seen and touched
e.g car
what is a service and an example
something done for others. It cannot not been seen and is intangible
e.g hairdressers
what does it mean if it’s durable and an example
a good or service which will last a long period of time
e.g washing machine
What does it mean if it’s non durable and an example
a good or service which will last a short period of time
e.g newspaper
What does it mean by a consumer and an example
It’s a good or service consumed by a person to satifsy their needs and wants
e.g food
what does it mean by capital and an example
goods and services consumed by businesses so they can provide other goods and services
e.g vehicles
What are the 3 main stages of production process?
Input
process
output
Describe the 1st stage of production and an example
Businesses gather raw materials that are required to male the good or service
E.g wheels, engine for a car
Describe the 2nd stage of production and an example
Combine raw materials to provide a good or service
E.g build the body of the car
Describe the 3rd stage of production and an example
Businesses have created the final good or service ready to be sold.
E.g Finished working car
What are the 4 factors of production?
Capital
Enterprise
Land
Labour
Describe capital
Is the money invested in business in order to get equipment. It’s paid through interest and is man made
Describe enterprise
is the organisation of the other 3 factors to take risks and turn ideas into a good or service. It earns products
Describe labour
It is the people that carry out the work needed to provide a good or service
Describe land
is the earth and all the natural resources that is needed to produce a good or service.
e.g wood for a shop
Describe how production creates wealth
The total value of the good should be more than the raw material. This is called value added
How to you calculate the value added
output value - input value
what is the first stage of the business cycle?
consumers have needs and wants
What is the second stage of the business cycle?
Businesses identify consumers needs and wants
Decide to make goods and services to satisfy them
What is the third stage of the business cycle?
Businesses employ the factors of production
The desired good and services increase wealth
what is the fourth stage of the business cycle?
Wages from employment allow consumers to consume goods and services
Why does the business cycle repeat itself over and over again?
Consumers unlimited wants will have created new things that businesses could now begin to produce
Businesses provide goods and services for consumers needs and wants
Why does the business cycle affect the work of businesses
for it to work it must satisfy consumers unlimited wants
If not the cycle will be broken and consumers begin to use different business to satisfy their particular wants
what is the primary sector?
exploiting natural resources from land,sea and air
what is the secondary sector?
manufacturing and construction of buildings and schools
what is the tertiary sector?
it provides a service such as bus travel and restaurants
what is the quaternary sector?
knowledge based jobs and have specialised skills. Includes education and blogging
what are examples of private sectors?
sole traders partnerships private limited companies public limited companies franchise
What does private sectors aim to do?
maximise profits
innovative ideas into successful businesses
expand the business
who is the private sector
- owned by
- controlled by
- financed by
Controlled by board of directors
owned by shareholders
limited liability
financed by shares
what does the public sector aim to do?
provide a high quality service to everyone in the country
Who is the public sector
- owned by
- controlled by
- financed by
Government owned
financed by taxes
controlled by government
Examples of public sectors?
police
schools
hospitals
What does the voluntary sector aim to do?
provide support for worthy causes
promote awareness
provide best service possible
Who is the voluntary sector
- owned by
- controlled by
- financed by
Controlled by trustees
financed by donations
not owned by trustees can be liable
what do you have to think about for sectors of economy ?
Ownership
decision making
financed
risk
how to satisfying consumers?
find out their wants design suitable products products to a proper standard treat them in a positive way manage the money of the business
Identify specialised workers of businesses
Marketing
operations
human resource management
finance
Are all businesses the same?
they are different as they are managed and run different
What is a mission statement?
Businesses record their specific activities to help people understand what it does, think positively think about
