unit 1 Introduction to business Flashcards
what is a business
A business is any organisation that makes goods or provides services
what types of businesses exist in the UK
There are many types of business in the UK. These range from small firms owned and run by just one self-employed person, through to large companies which employ thousands of staff all over the world
What is a business purpose
Businesses exist to provide goods or services.
what are goods
Goods are physical products such as burgers or cars. They are tangible.
what are services
Services are non-physical items such as hairdressing. They are non tangible
Where do business get their products from
Businesses buy the products they need from suppliers – firms selling products to other businesses
what are the customers and who are the individual that uses the product.
The individual who uses the product is called a consumer. Sometimes the customer and consumer are different people - for example, parents buy a pen for their child to use at school.
where do Businesses trade
Businesses sell to customers in markets. A market is any place where buyers and sellers meet to trade products - this can be a high street shop or a website.
what are businesses likely to face from other businesses selling the same product
Businesses are likely to be in competition with other firms offering similar products.
How does a business gains profit
A business adds value when the selling price of an item produced is higher than the cost of all the resources used to make it
what are the three steps in the process of making goods / services
Primary, secondary and tertiary sectors
These are three main types of industry in which firms operate. These sectors form a chain of production which provides customers with finished goods or services.
