Understanding Business Flashcards
(71 cards)
Give a description of a good
Goods(or products) are Tangible. This means that they can be seen and touched.
Give a description of a service
Services are Intangible. This means they cannot be seen or touched after they are provided.
Often they are something that an organisation does for its customers.
Give 4 examples of a good.
mars bar, milk, sandwich, burger, newspaper, petrol
Give 4 examples of a service.
bus, train, fish shop, hairdressers, internet, travel agent,bank loan, power station.
What is a Durable Good?
Goods that are not consumed in use and can be used a number of times
Example: TV
What is a Non-Durable Good?
A good which is consumed or only used once
Example: food
What is a Consumer Good?
Goods bought and used by consumers (private individuals)
Example: clothing
What is a Capital Good?
Goods that are used in producing other goods
Consumed by businesses
Example: machinery
Describe the difference between Needs and Wants.
A need is something that you require and is essential whereas a want is something you desire to have.
Define what a Buyer is.
Buyers are the people who spend money on goods or services.
Define what a Seller is.
Sellers are people who offer goods or services in exchange for money.
Define what a Consumer is.
Consumers is the person who uses the product.
Define what a Opportunity Cost is.
Whichever cost you chose you lose something in the process whichever thing you lose is called Opportunity Cost.
What is Wealth Creation
Wealth is created by a business by adding value to a product as it goes through the production process.
What are Factors of Production?
To provide us with products(goods and services). Factors of production are the different resources that are combined to produce something.
Explain what C.E.L.L is
C- capital: man-made resources that are needed to make a product
Example: machines, tools and money.
E-enterprise: combining all factors of production by the entrepreneur.
L-land: natural resources of the world
Example: water, air and plants.
L-labour: people employed by a business(the workforce) to make the product
Who have needs and wants?
People(consumers)
Who identify the wants and needs of the consumers
Businesses
Why do businesses produce goods and services to consumers?
To satisfy them with their needs and wants to make a profit
Who buy the goods and services and who produce them?
The consumers buy the goods and services.
The businesses produce the goods and services.
What is Sectors of Industry?
Businesses belong to different sectors of industry.
Some businesses will belong to more than one sector, for example a farmer may harvest his own fruit, bake this fruit cake in a farm shop. In this example the farmer’s business would belong to all three sectors
Describe what the Primary sector does in the sectors of industry.
Businesses in this sector take raw materials from the ground
Example: farming, fishing, forestry.
Describe what the Secondary sector does in the Sectors of Industry.
Businesses in this sector use raw materials and make something with them.
Example: manufacturer, builder, cake baker.
Describe what the Tertiary sector does in the Sectors of Industry?
Businesses in this sector provide a service
Example: hairdressers, instructor, hotel.