What Is Business

Question 1

What is business?

Answer 1

Business is a cooperation created by a person/people where you can buy or trade a variety of objects which result in an income of money

Question 2

What is a business term

Answer 2

The term business refers to an organisation or enterprise entity engaged in commercial, industrial or professional activities

Question 3

What is a good or service in a business

Answer 3

A business is any organisation that provides a good or service as part of a transaction with another person or organisation

Question 4

What is a need

Answer 4

A need is something we need to survive it’s a necessity, essential or a priority. Need are fulfilled before wants

Question 5

What is a disposable income

Answer 5

The money left over and available to spend after you have paid all your monthly commitments (rent, mortgage, utilities, bills or tax)

Question 6

What is a want

Answer 6

Wants are things you desire, can live without, luxury items that raise your standard or living. Fulfilling wants is limited to your disposable income

Question 7

What is tangible

Answer 7

Tangible is something you can see and touch

Question 8

What dose non-durable mean

Answer 8

Non-durable is consumed is a short time I.e. less that a year

Question 9

What dose durable mean

Answer 9

Durable is something that lasts for longer that one year

Question 10

What is a service

Answer 10

Services are things that are done for us, people buy a servos for a variety of reasons

Question 11

Examples for a service

Answer 11

-not qualified or skilled
(Surgical operations)
-don’t have enough time
(Dry cleaning, ironing)
-lazy
(Gardening, take away, shopping )
-don’t have the equipment
(Plumber , bus service)

Question 12

What are the factors of production

Answer 12

Factors of production are the internal factors
C- capital
E- enterprise
L- land
L- labor
They have total control

Question 13

What is capital

Answer 13

Capital is man made tools, machinery and equipment. Capital is also the money available to finance new projects
Eg tractors lorry’s ovens buildings

Question 14

What is enterprise

Answer 14

Enterprise is the business idea that best combines the other factors of production to make a profit and achieve their aims

Question 15

What is land

Answer 15

Land is the natural resource that businesses use ie the raw materials
eg plot of land, coal, forest, water, wood, ingredients

Question 16

What is labour

Answer 16

Labour means the workforce or employees of a business
eg joiner, farmer, shops assistant, teacher, staff, chef

Question 17

What are the sectors of industry

Answer 17

Sectors of industry are responsible for producing goods and services
1. Primary
2. Secondary
3. Tertiary

Question 18

What is the primary sector

Answer 18

Primary sectors are business that are concerned with growing products of extracting resources from the ground
-fishing
- farming
- drilling for oil

Question 19

What is the secondary sector

Answer 19

The secondary is the manufacturing sector, this takes the raw materials from the other industries in the primary sector and convert them into different products
eg fish into fish fingers

Question 20

What is the tertiary sector

Answer 20

The tertiary sector dose not produce a product they provide a service
eg selling fish fingers

Question 21

Why do business exists

Answer 21

Business generally exist to move a profit this is known as creating wealth .Wealth is created by adding value brought from the previous sector or obtain from nature

Question 22

How is value added to the primary sector

Answer 22

Value is added because the business has factor of production which to a customer doesn’t

Question 23

How is value added to the secondary sector

Answer 23

Value is added by the manufacturer converting the raw materials into products that are wanted or needed

Question 24

How dose the tertiary sector make wealth

Answer 24

Wealth is created from customers who pay a higher price as the sector makes them feel like they need or want it, it is usually in a smaller or closer shop so the customer then has to pay a higher price