What Is Business? Flashcards
(33 cards)
What is a business
A organisation which is involved in the production of GOODS or the provision of SERVICES to meet customer and other organisations needs and wants
What is a consumer
The person who ultimately uses (or consume) a product.
What is a customer
Any person or organisation which buys or is supplied with a product by a business
What is a good
Something that is tangible. A physical object which can be purchased
What is a service
Something that is intangible. A non physical item that can be purchased.
Example of a service
Banking, concert, tourism, education
Examples of goods
Flour, DVD, recorder, computer
What two types can consumer goods/services be split in to
Single use
Durable
Example of a consumer single use good/service
Chocolate bar
Example of a consumer good/service durable
Chair
What is a producer good/service
These allow businesses to produce consumer goods. They are also called CAPITAL GOODS
What are the two types of producer goods/services
Single use
Durable
What is a consumer good/service
Goods/services we consume
Producer good/service single use example
Raw materials: food and clothing
Producer good/service durable example
Used over a long period of time eg: machinery
What are the 4 factors of production
Land
Labour
Capital
Enterprise
What is lands factor reward
Rent
What is the factor land defined as
All natural resources therefore includes the land we stand on, grow crops on, above or in the earth.
Example of land resources
Oil, gas, trees, water, fish, coal and minerals.
Why is land valuable
The supply is limited
What does the factor labour refer to
The human resource in the business. The workers who are employed to manufacture the product or provide the service for which the business has been set up.
Two types of labour
Physical
Mental
Example of physical labour
Digging roads
Example of Mental labour
Services provided by office workers
