What is a Business? Flashcards Preview

CCEA GCSE Business Studies > What is a Business? > Flashcards

Flashcards in What is a Business? Deck (35)
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1

Economy is divided into

(2 marks)

Different business sectors and the businesses within them exist to provide goods or services.

2

All businesses have

(2 marks)

Inputs and outputs

3

Businesses must add

(1 mark)

value during production.

4

Types of business

(4 marks)

- Small firms; owned/run by 1 self- employed individual.
- Large companies; employ thousands of staff all over the world.

5

Businesses exist to

(1 mark)

Provide goods or services

6

Amount of businesses that start up each year

(1 mark)

Nearly half a million.

7

Majority of businesses are

(2 marks)

Small and operate in the service sector.

8

Business production and distribution (in order).

(5 marks)

Inputs, Production, Outputs, Customer, Consumer

9

Added value increases during

(4 marks)

Inputs, production, outputs and distribution in a grocery store.

10

Sell businesses the products they need

(1 mark)

Suppliers

11

Buy products

(1 mark)

Customers

12

Individual who uses a product

(1 mark)

Consumer

13

Example of when a customer and consumer are different people

(3 marks)

Parent (customer) buys a pen for their child (consumer) to use at school.

14

Sell to their customers in markets

(1 mark)

Businesses

15

Examples of Markets

(2 marks)

- High street shop
- Website

16

Businesses are likely to be in competition with

(1 mark)

Other firms offering similar products

17

Businesses buy the products they need from

(2 marks)

Suppliers (and then sell to customers)

18

Suppliers

(1 mark)

Firms selling products to other businesses.

19

Consumer

(2 marks)

The individual who uses the product sold by a business.

20

Businesses sell to customers in

(1 mark)

Markets

21

In order to create goods and services

(3 marks)

a business buys or hires inputs which are transformed into outputs called products.

These are the goods and services used by consumers.

22

Examples of Inputs such as

(4 marks)

Raw materials, equipment, buildings and staff.

23

These inputs are transformed into

(1 mark)

Outputs called products.

24

A business adds value when

(2 marks)

The selling price of an item produced is higher than the cost of all the resources used to make it.

25

Example of Adding Value

(4 marks)

Pair of designer sunglasses sell for £100.

If the cost of the materials, employees, marketing and all other inputs used in making one set of sunglasses is just £20 - £80 worth of value has been added by the firm during production.

26

3 main types of industry in which firms operate

(3 marks)

Primary production, secondary production and tertiary production

27

These sectors (the types of industry in the firm) form

(2 marks)

A chain of production which provides customers with finished goods or services.

28

Primary production

(2 marks)

Involves acquiring raw materials.

Eg - metals and coal have to be mined

29

Examples of Primary Production

(6 marks)

Metals and coal are mined, oil drilled from the ground, rubber tapped from trees, foodstuffs farmed and fish trawled (Extractive Production)

30

Secondary Production

(2 marks)

The manufacturing and assembly process.

Involves converting raw materials into components and assembling the product.

31

Example of Secondary Production: Converting raw materials into components

(1 mark)

Making plastics from oil.

32

Example of Secondary Production: Assembling the product

(1 mark)

Building houses, bridges and roads.

33

Tertiary production

(2 marks)

Refers to the commercial services that support the production and distribution process.

34

Example of Tertiary Production

(3 marks)

Insurance, transport, advertising, warehousing and other services such as teaching and health care.

35

Chain of production shows

(1 mark)

Interdependence