Unit 1 Flashcards Preview

Higher Business > Unit 1 > Flashcards

Flashcards in Unit 1 Deck (41)
Loading flashcards...
1
Q

What is a business?

A

It is an organisation that is used to provide a good or service for customers to purchase.

2
Q

What is a good and an example

A

they are physical tangible things which can be seen and touched
e.g car

3
Q

what is a service and an example

A

something done for others. It cannot not been seen and is intangible
e.g hairdressers

4
Q

what does it mean if it’s durable and an example

A

a good or service which will last a long period of time

e.g washing machine

5
Q

What does it mean if it’s non durable and an example

A

a good or service which will last a short period of time

e.g newspaper

6
Q

What does it mean by a consumer and an example

A

It’s a good or service consumed by a person to satifsy their needs and wants
e.g food

7
Q

what does it mean by capital and an example

A

goods and services consumed by businesses so they can provide other goods and services
e.g vehicles

8
Q

What are the 3 main stages of production process?

A

Input
process
output

9
Q

Describe the 1st stage of production and an example

A

Businesses gather raw materials that are required to male the good or service
E.g wheels, engine for a car

10
Q

Describe the 2nd stage of production and an example

A

Combine raw materials to provide a good or service

E.g build the body of the car

11
Q

Describe the 3rd stage of production and an example

A

Businesses have created the final good or service ready to be sold.
E.g Finished working car

12
Q

What are the 4 factors of production?

A

Capital
Enterprise
Land
Labour

13
Q

Describe capital

A

Is the money invested in business in order to get equipment. It’s paid through interest and is man made

14
Q

Describe enterprise

A

is the organisation of the other 3 factors to take risks and turn ideas into a good or service. It earns products

15
Q

Describe labour

A

It is the people that carry out the work needed to provide a good or service

16
Q

Describe land

A

is the earth and all the natural resources that is needed to produce a good or service.
e.g wood for a shop

17
Q

Describe how production creates wealth

A

The total value of the good should be more than the raw material. This is called value added

18
Q

How to you calculate the value added

A

output value - input value

19
Q

what is the first stage of the business cycle?

A

consumers have needs and wants

20
Q

What is the second stage of the business cycle?

A

Businesses identify consumers needs and wants

Decide to make goods and services to satisfy them

21
Q

What is the third stage of the business cycle?

A

Businesses employ the factors of production

The desired good and services increase wealth

22
Q

what is the fourth stage of the business cycle?

A

Wages from employment allow consumers to consume goods and services

23
Q

Why does the business cycle repeat itself over and over again?

A

Consumers unlimited wants will have created new things that businesses could now begin to produce

Businesses provide goods and services for consumers needs and wants

24
Q

Why does the business cycle affect the work of businesses

A

for it to work it must satisfy consumers unlimited wants

If not the cycle will be broken and consumers begin to use different business to satisfy their particular wants

25
Q

what is the primary sector?

A

exploiting natural resources from land,sea and air

26
Q

what is the secondary sector?

A

manufacturing and construction of buildings and schools

27
Q

what is the tertiary sector?

A

it provides a service such as bus travel and restaurants

28
Q

what is the quaternary sector?

A

knowledge based jobs and have specialised skills. Includes education and blogging

29
Q

what are examples of private sectors?

A
sole traders
partnerships
private limited companies
public limited companies
franchise
30
Q

What does private sectors aim to do?

A

maximise profits
innovative ideas into successful businesses
expand the business

31
Q

who is the private sector

  • owned by
  • controlled by
  • financed by
A

Controlled by board of directors
owned by shareholders
limited liability
financed by shares

32
Q

what does the public sector aim to do?

A

provide a high quality service to everyone in the country

33
Q

Who is the public sector

  • owned by
  • controlled by
  • financed by
A

Government owned
financed by taxes
controlled by government

34
Q

Examples of public sectors?

A

police
schools
hospitals

35
Q

What does the voluntary sector aim to do?

A

provide support for worthy causes
promote awareness
provide best service possible

36
Q

Who is the voluntary sector

  • owned by
  • controlled by
  • financed by
A

Controlled by trustees
financed by donations
not owned by trustees can be liable

37
Q

what do you have to think about for sectors of economy ?

A

Ownership
decision making
financed
risk

38
Q

how to satisfying consumers?

A
find out their wants 
design suitable products
products to a proper standard 
treat them in a positive way
manage the money of the business
39
Q

Identify specialised workers of businesses

A

Marketing
operations
human resource management
finance

40
Q

Are all businesses the same?

A

they are different as they are managed and run different

41
Q

What is a mission statement?

A

Businesses record their specific activities to help people understand what it does, think positively think about