Role of business in society

Question 1

Methods of maximising customer service

Answer 1

• a firm should research the wants of a customer
• a firm should invite customers to make comments on the product or service
• a firm should charge fair prices that reflect the product being offered
• a firm should train their staff to be polite and helpful
• a firm should provide a good after sales service
• a firm should ensure that their customers banking details are kept secure

Question 2

Why should a firm aim to maximise customer service?

Answer 2

• firms are more likely to produce a good that the customer wants
• complaints from customers will be reduced
• the firm will get a good reputation
• customers stay loyal to a firm that treats them well
• the number of returns should be reduced
• the firm avoids bad press

Question 3

What are the 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

Quaternary

Answer 6

This sector consists of those industries providing information services, such as computing.

Question 7

Tertiary

Answer 7

This sector is involved in providing services

Question 8

What are the sectors of the economy?

Answer 8

Private, public and third

Question 9

Public sector

Answer 9

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 10

Private sector

Answer 10

This is the part of the economy that is owned and controlled by a private firm or an individual. Their main aim is to make a profit.

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 a 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.