Purpose Of Business

Question 1

Business

Answer 1

Provides goods or services to customers

Question 2

Enterprise

Answer 2

A business or the motivation to start one

Question 3

Entrepreneur

Answer 3

A person who sets up a business and takes on risks

Question 4

Goods

Answer 4

Physical product given to customers in exchange for payment

Question 5

Services

Answer 5

Doing something for a customer in exchange for payment

Question 6

Customer

Answer 6

A person who buys goods or services

Question 7

Consumer

Answer 7

A person who uses goods or services

Question 8

Cash

Answer 8

Money in its physical form

Question 9

Assets

Answer 9

Things that a business owns

Question 10

Profit

Answer 10

Total revenue-total costs=positive amount

Question 11

Loss

Answer 11

Total revenue-total costs=negative amount

Question 12

Accounts

Answer 12

The records of the financial activity of a business

Question 13

Investment

Answer 13

Putting money into a business

Question 14

Debt

Answer 14

Money that a business owes

Question 15

Business plan

Answer 15

A document outlining how a business is going to start and operate

Question 16

Wants

Answer 16

Things that people would like to have

Question 17

Needs

Answer 17

Things that people must have to live

Question 18

Risks

Answer 18

Dangers or potential losses

Question 19

Value

Answer 19

What something is worth in money

Question 20

Sector

Answer 20

A part of the economy that provides specific goods or services
E.g. Education

Question 21

Primary sector

Answer 21

Raw materials or natural resources
E.g. Oil

Question 22

Secondary sector

Answer 22

Manufactured goods-things that are made

Question 23

Tertiary sector

Answer 23

Services that are offered

Question 24

Factors of production

Answer 24

What is needed to produce products

Question 25

Factors of production-land

Answer 25

All natural resources, renewable and non-renewable E.g. Coal, wood, animals, and mines

Question 26

Factors of production-labour

Answer 26

Work done by people to produce goods and services

Question 27

Factors of production-capital

Answer 27

Things that are made to enable production E.g. Factories, machines, and schools

Question 28

Factors of production-enterprise

Answer 28

Entrepreneurs who take risks to produce things using the other factors of production

Question 29

Opportunity cost

Answer 29

The benefit of a course of action which is lost when you decide to do something else

Question 30

Objectives

Answer 30

The specific goals set by a business to reach its aims

Question 31

Objectives of an entrepreneur

Answer 31

Financial reward Independence Fulfil a need for good or services Have an interest in the area of business

Question 32

The business environment

Answer 32

All the factors, both internal and external that affect a business

Question 33

Raw materials

Answer 33

Unprocessed resources from land

Question 34

Specialisation

Answer 34

Concentrating on providing one good or service

Question 35

Resources

Answer 35

Things that are used to produce goods and services