1. Understanding Business Flashcards
What is an organisation?
a group of people working together in a controlled way, with a common aim
What is a business?
an organisation that exists to satisfy needs or wants, by supplying goods or services
What is production?
where goods are made by going through a number of stages. they can be semi-finished goods which go o not another stage of production
What is consumption?
the using up of goods (eating foods) also includes making use of services such as banking and insurance
What are needs?
things essential for us to stay alive
What are wants?
things that are luxuries which help make life more comfortable
What are tangible goods and services?
things that can be touched
What are intangible goods and services?
things that cannot be touched
What are durable goods and services?
these last for a long time and can be used over and over again
What are non-durable goods and services?
do not last long and can only be used once (food/drink)
What are goods?
type of product that can be seen, touched or used (Iphone, food, car)
What are services?
a non-physical product in the form of help, advice, I information or labour (a haircut, NHS, taxi)
What is a capital good?
a durable good that is used in the production of goods or services (machinery, tools, computers)
What is a consumer good?
goods that are ultimately consumed rather than used in the production of other goods ( microwave oven, bicycle)
What are inputs?
resources such as labour, raw materials and money. things used by the organisation to make the outputs
What are outputs?
the goods and services that an organisation produces (their product)
Whats the role of business in society?
to provide a good or service to customers
to fulfil wants and needs
to make a profit
to develop an idea
to fill a gap in the market
What are the four factors of production?
Land, Labour, Capital, Enterprise
What is land?
the physical space itself, the resources on the surface, the sea, rivers and all the resources within them, such as oil and mineral deposits.
What is labour?
the physical or mental effort by the workforce to make products (workforce is people who work in the business)
What is capital?
the buildings, equipment, tools, vehicles and financed used in production
What is enterprise?
entrepreneurs who see a business opportunity and take the necessary risks to exploit it
What are the sectors of industry?
Primary, Secondary, Tertiary and Quaternary
What is the primary sector?
these are extractive industries which use the earths natural resources (fishermen, farmers)
