What is a Business Unit 1.1 Flashcards
What is a business
an organisation that transforms resources/inputs into outputs/products purchased by their customers
Describe a business
Diverse and present in our everyday lives
What do Businesses supply and to whom
wide range of goods and services , which are demanded by individual consumers and other businesses
Define a good
physical product e.g suit/house
Define a service
intangible items e.g insurance/decorating
Define product
general term which includes goods and services
Business are very important…..
….. to the UK
Why are businesses important to the UK
They bring benefits to the country, its economy and its inhabitants
State the benefits of businesses to the UK
Create Employment
Create Income
Create New Products
Enhance country’s reputation
Explain how Businesses create employment
Businesses create jobs for individuals. In many cases the business only has one person in it and in some cases the business employs hundreds of thousands of people
Explain how Businesses create income
Businesses earn profit from their activities which are paid to their owners who therefore earn income. Employees are paid for their work
Explain how Businesses create new products
Businesses improve lives of people by creating new goods and services. Pharmaceutical businesses (GSK) research and develop new medicines that an cure illnesses, extend life expectancy and improve the quality of people’s lives
Explain how Businesses enhance a country’s reputation
Successful businesses help to establish and maintain a country’s reputation for being innovative and forward looking.
How businesses enhance a country’s reputation UK example
UK has a strong global rep for producing top quality music and TV programmes
(Unit 1.1.2) Businesses exist to ……
transform inputs/resources into goods and services that are in demand from individuals and other businesses
satisfy our needs for a range of goods and service which we would be unable to provide for ourselves
provide a means to satisfy people’s desire to be creative or to make money
What does production process undertaken by business do to the inputs
adds value
Why does an increase in value occur to the inputs
they are demanded by certain groups of consumers who will receive benefits from having that product
How do businesses interact with us throughout our daily lives
Modern methods of communication have brought businesses into our homes , relationships and leisure activities
Give an example of business interaction within our everyday lives
Using internet to research / communicate with friends as a business would have supplied device (phone/laptop) you use to connect to the internet and a business would have provided internet service and web pages you view
Why aren’t we able to provide some goods /services ourselves
- we don’t have the skills/ time to source them
- the costs of supplying them ourselves would be prohibitive
An example of this would be without specialist businesses
It would be unlikely we would be able to fly to other countries as we don’t have the resources /skills to source this service
Privately owned businesses are an efficient means of…
supplying the wide variety of goods and services needed by modern economies
expand on bs exist to satisfy people’s desire to be creative or to make money
some entrepreneurs start businesses that allow them to express creative talents
others make a fortune from creating and expanding businesses
people emplyed by businesses have to make many
descisions
