nature and purpose of business

Question 1

why might a business be set up?

Answer 1

to produce a good/ service
to distribute products, eg asda, tesco
to benefit society, eg charity 
to fill a gap in the market
to fulfil a business opportunity

Question 2

goods and services

Answer 2

goods are tangible; items that can be used or stored

services are intangible; actions that cannot be stored.

Question 3

wants:

Answer 3

event tickets
holiday
car

Question 4

needs:

Answer 4

water
clothing
food

Question 5

what’re the factors of production?

Answer 5

land, labour, capital, enterprise

Question 6

what’s a primary sector?

Answer 6

the primary sector is made up of businesses that produce or extract raw materials. This is the first stage of the production process and includes fishing, farming and mining.

Question 7

what’s a secondary sector?

Answer 7

The next stage in the production process is the secondary sector which makes or manufactures goods. They take the raw materials from the primary sector and turn them into finished goods. This often takes place in factories and includes food manufacturers such as Heinz and car manufacturers such as BMW.

Question 8

what’s a tertiary sector?

Answer 8

The final stage in the production process is the tertiary sector. This sector provides services. This includes estate agents, hairdressers and restaurants.

Question 9

business functions:

Answer 9

There are four main business functions that work together to make a business successful. These are marketing, operations, human resources and finance.