The purpose and nature of business (AQA GCSE Business): Flashcards
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14 cards from this deck
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Practise the cards
14 cards from this deck
Definition of a business
Definition of a business
Organisation producing goods/services commercially to customers
What are goods?
What are goods?
Physical, tangible items you can touch and hold
What are services?
What are services?
Activities or experiences provided; can't be stored or held
What are needs?
What are needs?
Essential goods/services required for survival (food, shelter)
What are wants?
What are wants?
Goods/services people desire but don't require for survival
Opportunity cost meaning
Opportunity cost meaning
Value of best alternative given up when making a choice
Primary sector activity
Primary sector activity
Extracting/harvesting raw materials from natural environment
Secondary sector activity
Secondary sector activity
Manufacturing/transforming raw materials into finished products
Tertiary sector activity
Tertiary sector activity
Providing services to customers
Four factors of production
Four factors of production
Land, Labour, Capital, Enterprise
Land as factor of production
Land as factor of production
Physical space and natural resources available
Labour as factor of production
Labour as factor of production
All people who work in the business (human resources)
Capital as factor of production
Capital as factor of production
Buildings, machinery, equipment, and tools used
Enterprise as factor of production
Enterprise as factor of production
Entrepreneurs who identify opportunities, take risks & organise resources