Business Structures Flashcards
1
Q
What are the 2 reasons that businesses exist?
A
- To provide goods and services to satisfy consumers’ needs and wants
- To achieve an outcome, usually a profit
2
Q
Define business
A
An economic activity that provides a good or service to satisfy the needs and wants of consumers
3
Q
Define goods
A
Tangible products, they are something in a physical form
4
Q
List some examples of goods
A
- Clothes
- Television
- Phones
- Food
5
Q
Define service
A
Activities or actions that are performed and can be described as intangible or invisible goods
6
Q
List some examples of services
A
- Medical (doctor, nurse)
- Financial (bank, accountant)
- Trade services (electrician, plumber)
7
Q
Define exchange
A
The transfer of something of a value from one party to another, usually goods and services for money
