Nature of Business

Question 1

Businesses offer a vast array of products that improve our standard of living

Answer 1

Economic & Social Importance of Business - Quality of Life

Question 2

General business activity results in higher levels of economic growth and wealth.

Answer 2

Economic & Social Importance of Business - Wealth Creation

Question 3

Businesses provide individuals with opportunity to turn their ideas and passions into reality for personal benefit.

Answer 3

Economic & Social Importance of Business - Entrepreneurship

Question 4

Through research & development, existing products are improved and new products created

Answer 4

Economic & Social Importance of Business - Innovation

Question 5

Provide Consumers freedom of choice and opportunity to purchase products at competitive reasonable prices

Answer 5

Economic & Social Importance of Business - Choice

Question 6

Provide money to employees and shareholders. This money then circulates economy

Answer 6

Economic & Social Importance of Business - Incomes

Question 7

Businesses provide majority of all private sector jobs and creates more jobs and opportunities

Answer 7

Economic & Social Importance of Business - Employment

Question 8

More money circulating economy

Answer 8

Economic & Social Importance of Business - Profit

Question 9

People who are a part owner of a company, due to the shares they possess

Answer 9

Shareholders

Question 10

If revenue > operating expenses = Profit

Answer 10

Relationship Between Revenue, Operating Expenses & Profit

Question 11

Business practice that involves companies voluntarily integrating social, ethical and environment concerns into their operations and interactions with stakeholders. About going beyond legal requirements to positively impact society and the environment

Answer 11

Corporate Social Responsibility

Question 12

Difference between price of finished output and cost of inputs involved to make it

Answer 12

Adding Value

Question 13

When a business utilises and combines available resources to manufacture an output

Answer 13

Value Adding

Question 14

Outputs produced by a business ran by individuals/groups, to make a profit (own benefit)

Answer 14

Private Sector

Question 15

Outputs produced by public organisations to provide a good/service that is not adequately offered in private sector

Answer 15

Public Sector

Question 16

Services aimed at businesses

Answer 16

Commercial Services

Question 17

Services aimed at customers

Answer 17

Personal/Direct Services

Question 18

1. Personal/Direct Services
2. Commercial Services

Answer 18

Types of Services

Question 19

Goods used by businesses to help produce goods for other businesses and/or consumers

Answer 19

Producer Goods

Question 20

1. Single Use = one
2. Durable Goods = last longer, 2nd hand value

Answer 20

Consumer Goods

Question 21

Actions that satisfy wants/needs through efforts of people or equipment, Intangible

Answer 21

Services

Question 22

1. Consumer Goods
2. Producer Goods

Answer 22

Types of Goods

Question 23

Tangibles, See & Touch

Answer 23

Goods

Question 24

Growing Importance of Service Sector

Answer 24

Over past 50yrs:
- More countries have been producing goods for Aus to import , opportunity for service sector
- Improved education and technology have led to increase of people in the service sector

Question 25

How Businesses Create Wealth Within Economy

Answer 25

Business gets money from consumers for output, at the same time the business has to pay other businesses for operational costs, the left over money is then distributed amongst government (tax), shareholders, employees, owners and business itself. This money is then redistributed across economy. The cycle continues sustaining economic growth