What is a Business Flashcards
What is a business?
A business is any organisation that provides goods or provides services.
Goods?
physical products e.g burgers
Services?
non physical items e.g hairdressing
Customer needs?
Wants and desire of buyers
A consumer…
uses the product
Customer and consumer may be different because….
parents may buy a pen for their son to use at school
What is a market
where buyers and sellers meet to trade products
How may a business add value?
when the selling price is higher than the cost of all resources used to make it
what are the different types of sectors
- primary
- secondary
- tertiary
what does primary production involve?
acquiring raw materials e.g mining metal and coal
What does secondary production involve?
manufacturing and assembly process. converting raw materials into components e.g making plastics from oil
What does Tertiary production involve?
refers to commercial services that support production and distribution services e.g insurance, transport, advertising
