Business Flashcards
The process of producing goods and servcies (22 cards)
- What is business activity?
The process of producing goods and services to satisfy consumers demand
What is a need?
Essential for life
What is a want?
The things you desire but not essential for life
What is the purpose of business activity?
Satisfy consumers needs and wants through services and goods production
What is the reasoning of why we cant have all our wants?
Our wants are unlimited
If 100 people in the country had a much higher income than the rest of the population, what may happen?
They buy more than they need
Items will become scarce
Trouble in politics
Give a definition of economic problem?
Unlimited wants cant be met because there are limited factors of production. Creates scarcity.
What does factors of production mean?
The resources needed to produce goods and services. (labour, captial, land, enterprise
What does it mean when it says they are not enough factors of production?
There are not enough goods and services to meet the populations wants
What is ment by scarcity?
There are not enough goods and services to meet the wants of the popluation
What is ment by oppurtuntiy cost?
Opportunity cost is what you give up when you choose to do one thing instead of another. It’s like deciding between buying candy or saving money for a toy. If you choose candy, the opportunity cost is the toy you could have bought instead.
What is specialisation?
Where people concentrate on what they are best at
What does increasing specialistion mean?
That buisnesses are far more efficient than once were
Name a positive impact of specialisation
Reduces the cost of production
What is ment by division of labour
Production is divided into separate tasks and each worker does just one of those task
What are the different types of goods and services?
Consumer goods:
Goods which are sold in public, of which we can see and touch. They are separated into 2, non-durable goods and durable goods e.g. durable : items are repeated ‘tv’ non-durable: iteams that are used once “food or drinks”
Consumer services:
Products which are sold to the public, but cant be seen or touched e.g. banking, insurance
Capital goods:
Products are sold to other businesses to help them in their production process e.g. machines, computers
How does a business add value?
by taking raw materials and turning them into a good or service which sells to customers at a price greater than the cost of the raw materials used in their production
When will profit increase when increasing added value?
If a business is able to increase its added value without increasing its cost
What is a positive trait for branding?
Brings trust with customers
Increases added value
How do you increase a good or services value?
Excellence service quality
Build trust
What are three ways u can increase goods or services value?
Product feature
products that have more features and functions than similar products on the markert will allow the producerr to charge a high price
Covenience
many consumers lead busy lives nd they are often prepared to pay a higher price for goods or services, which saves time e.g. ready meals
Can u do this?
YES YOU CAN ZO AND GOOD LUCK, REMEMBER GOD IS WITH YOU AND HE LOVES YOU!
