Flashcards in Business knowledge test one Deck (23):
This is where buyers and sellers exchange goods and services.
They provide goods and services to the public. these can operate on the pubic, private and third sectors.
Physical objects that a business sells to its customers
Non-physical objects that a business sells to its customers
Goods and services
Define consumer durable
Goods that last several years and are used a large number of times
Define single use goods
Goods or services that are only used once
They are essentials for survival: food, water, shelter, clothing and warmth
They are not essential for survival but we like to have them
Someone who is willing to take risks of setting up their own business
The willingness to take risks show initiative and take on new ventures
Define public sector
Organisations that are owned by the state and run by the government
Define private sector
Organisations that are not owned by the state, including sole traders, partnerships and limited companies
Define third sector
The part of an economy comprising non-governmental and non-profit-making organisation, including charities, voluntary and community groups.
The process of selling a public sector organisation to the private sector by changing it into a public limited company
Name 2 advantages of privatisation
-Governments can raise income from the sale leading to possible lower taxation
-Private sector involvement is likely to improve the service and efficiency.
Define primary sector
all activities that obtain natural resources (farming, mining etc.)
Name 2 disadvantages of privatisation
-If the organisation fails the public loses the service
-The prices could increase
Define secondary sector
All manufacturing and construction activities that create a finished good
Define tertiary sector
Selling finished goods and providing services
Define chain of production
The stages through which a product passes before being sold to a consumer
Name two advantages of owning business at each stage of
-The business is only reliant of themselves meaning higher quality.
-Economies of scale (the business doesn't charge itself prices since its not paying a supplier)