Unit 1: Understanding Business Flashcards
What is GOODS?
Goods are tangible
What does tangible mean?
Something can be seen and touched
What does intangible mean?
It cannot be seen or touched after it has been provided
What is a SERVICE?
Services and intangible.
Often they are something that an organisation does for its customers
Give three examples of goods.
Car Phone Magazine Candle Etc.
Give three examples of services.
Hairdresser Teacher Bank Plumber Etc.
What does durable mean?
The good/ service will last for a long period of time
What does non-durable mean?
The good/ service will not last for a long period of time
They are goods that can only be used once
What does consumer mean?
This is the individual people that consume the goods and service
What does capital mean?
This is the goods and services that are consumed by the business so they can provide other goods and services
Give two examples of durable items.
Computer
Car
Toothbrush
Etc.
Give two examples of non-durable items.
Biscuit
Cinema ticket
Meal
Etc.
Give two examples of something for a consumer.
Food
Clothing
DVD’s
Etc.
Give two examples of capital.
Machinery
Vehicles
Tools
Etc.
What must a business do?
Satisfy the needs and wants of the consumer
What is a need?
Needs are the basic requirements for survival
Give two examples of a need.
Food
Shelter
Water
Clothing
What is a want?
Wants are required to make life pleasant for us and include luxuries and other non-essential items
Give two examples of a want.
Holidays Phone New car PS3 Etc.
What are buyers (or customers)?
They are people who spend money on goods or services
What are sellers?
The people who offer goods or services in exchange for money
What are consumers in the role of business?
They are the people that actually use the product or service, even if they don’t actually pay for it
e.g. product = Children’s shoes
Consumer = Children
Buyer = Mum/ Dad/ Carer
What is scarcity force us to do?
Scarcity forces us to make choices
What is an opportunity cost?
The thing you give up in order to have your choice
e.g. if you choose a mars bar instead of a kit kat then the kit kat is the opportunity cost
