What Is Business?

Question 1

What is a business

Answer 1

A organisation which is involved in the production of GOODS or the provision of SERVICES to meet customer and other organisations needs and wants

Question 2

What is a consumer

Answer 2

The person who ultimately uses (or consume) a product.

Question 3

What is a customer

Answer 3

Any person or organisation which buys or is supplied with a product by a business

Question 4

What is a good

Answer 4

Something that is tangible. A physical object which can be purchased

Question 5

What is a service

Answer 5

Something that is intangible. A non physical item that can be purchased.

Question 6

Example of a service

Answer 6

Banking, concert, tourism, education

Question 7

Examples of goods

Answer 7

Flour, DVD, recorder, computer

Question 8

What two types can consumer goods/services be split in to

Answer 8

Single use

Durable

Question 9

Example of a consumer single use good/service

Answer 9

Chocolate bar

Question 10

Example of a consumer good/service durable

Answer 10

Chair

Question 11

What is a producer good/service

Answer 11

These allow businesses to produce consumer goods. They are also called CAPITAL GOODS

Question 12

What are the two types of producer goods/services

Answer 12

Single use

Durable

Question 13

What is a consumer good/service

Answer 13

Goods/services we consume

Question 14

Producer good/service single use example

Answer 14

Raw materials: food and clothing

Question 15

Producer good/service durable example

Answer 15

Used over a long period of time eg: machinery

Question 16

What are the 4 factors of production

Answer 16

Land
Labour
Capital
Enterprise

Question 17

What is lands factor reward

Answer 17

Rent

Question 18

What is the factor land defined as

Answer 18

All natural resources therefore includes the land we stand on, grow crops on, above or in the earth.

Question 19

Example of land resources

Answer 19

Oil, gas, trees, water, fish, coal and minerals.

Question 20

Why is land valuable

Answer 20

The supply is limited

Question 21

What does the factor labour refer to

Answer 21

The human resource in the business. The workers who are employed to manufacture the product or provide the service for which the business has been set up.

Question 22

Two types of labour

Answer 22

Physical
Mental

Question 23

Example of physical labour

Answer 23

Digging roads

Question 24

Example of Mental labour

Answer 24

Services provided by office workers

Question 25

Supplies of labour with appropriate ……… are also limited

Answer 25

Skills

Question 26

Labour factor reward

Answer 26

Wage/salary

Question 27

What is the factor capital

Answer 27

The manufactured resource that is used in the production process to make G/S.

Question 28

What is capital wanted for

Answer 28

Capital is not wanted for itself but for what it can go on to produce.

Question 29

Why is capital always in short supply

Answer 29

Capitalists will risk investing it only in safe business projects

Question 30

What is the factor capitals reward

Answer 30

Interest

Question 31

What is the factor enterprise

Answer 31

The skill and risk taking ability of the person who brings the other resources together in or react proportions to produce a good or service and run the business successfully

Question 32

What it means to be enterprising

Answer 32

To spot a good business opportunity and have the vision and drive to make that business succeed.

Question 33

What is a entrepreneur

Answer 33

Plays a essential role in the business, estimating future demand and ensuring production is the correct level to meet demand