role of business in society

Question 1

list the ways in which a firm could maximise the satisfaction a customer receives

Answer 1

• research the wants of the customer
• charge fair prices that reflect the product
• train staff to be polite and helpful
• invite customers to make comments
• provide good after-sales service

Question 2

why should firms aim to maximise customer satisfaction?

Answer 2

• firm is more likely to produce a wanted good so high sales
• firm will get a good reputation so more likely to get government grants
• customers stay loyal so repeat sales
• the firm avoids bad press
• number of returns reduces so costs lowered

Question 3

what are the 4 sectors of industry?

Answer 3

primary, secondary, tertiary and quaternary

Question 4

primary

Answer 4

this is the sector that is responsible for the extraction of raw materials from the land

Question 5

secondary

Answer 5

this sector involves the assembling of goods or raw materials to make or manufacture man made goods

Question 6

tertiary

Answer 6

this sector is involved in providing services

Question 7

quaternary

Answer 7

this sector consists of those industries providing information services

Question 8

what are the sectors of economy

Answer 8

private, public and third

Question 9

private sector

Answer 9

this is the part of the economy that is owned, controlled and funded by a private firm or an individual. their main aim is to make a profit

Question 10

public sector

Answer 10

this is the part of the economy that is owned, controlled and funded by the government. their main aim is to help society with a specific area.

Question 11

third sector

Answer 11

this is the part of the economy that is undertaken for voluntary purposes. their main aim is to support a cause that is not being covered fully in the public sector.

Question 12

social enterprise

Answer 12

this is the part of the economy that is set up to support a cause. it is different from a charity in that it aims to make a profit. it is different from firms in the private sector in that it aims to reinvest their profits back into the business.