Unit 1 KA1- The Roles of Business in Society Flashcards
What is a need?
The basic requirements that are essential for survival such as food, water, clothing, shelter and warmth.
What is a want?
Things we would like to have but don’t need to survive. These include luxuries such as mobile phones or holidays.
What is a good?
Products that you can see and touch (tangible) such as laptops, clothes or food.
What is a service?
Products that you cannot hold or touch (intangible) such as public transport, a haircut or a visit to the cinema.
Explain the factors of production?
Land - The natural resources used to provide a good or service such as water, a plot of land, fields, fish or coal
Labour - The workforce used to produce a product or provide a service such as builders, teachers or plumbers
Capital - The man-made resources used to produce a product or provide a service such as machinery, tools, money or delivery trucks
Enterprise - The idea the owner had to create the business. How the land, labour and capital is used to make a good or provide a service
What are the sectors of industry?
Primary
Secondary
Tertiary
Quaternary
Explain the Primary Sector
The primary sector of industry is concerned with the extraction of raw materials or natural resources from the land.
Examples of businesses that operate in the primary sector would be farming, mining, fishing or oil production.
Explain the Secondary Sector
The secondary sector of industry is concerned with manufacturing. This would involve taking the raw materials from the primary sector and converting them into new products.
Examples of businesses that operate in the secondary sector would be car manufacturers, food production or building companies.
Explain the Tertiary Sector
The tertiary sector of industry is concerned with providing a service. Services are activities that are done by people or businesses for consumers.
Examples of businesses that operate in the tertiary sector would be hairdressers, banks, supermarkets or cinemas.
Explain the Quaternary Sector
The quaternary sector consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields).
